2,000 affordable housing units remain unoccupied as State considers new financing model

Boma Yangu new Mukuru housing etate.[File, Standard]

About 2,000 affordable housing units remain unoccupied under the Affordable Housing Programme.

In a statement issued on Friday, September 11, Interior Principal Secretary Raymond Omollo said the government has completed approximately 10,000 units, with about 8,000 already occupied.

According to Omollo, despite the progress, the government is considering sustainable financing mechanisms to strengthen the programme’s long-term financing, including the use of revenue generated from the sale and occupation of completed housing units.

“The government is also considering sustainable financing mechanisms that would strengthen the programme’s long-term financing model, including the use of revenues generated through the sale and occupation of completed housing units,” Omollo said.

He said the objective is to establish a revolving and sustainable financing system in which completed developments would help finance subsequent phases of construction.

The development comes as the government considers a structured and affordable housing-financing model that would enable security officers to access homes and repay the cost progressively over an agreed period.

Under the proposed arrangement, financing for a defined number of housing units could be secured upfront, with participating officers repaying the cost over an agreed period.

According to Omollo, the approach would provide a sustainable way of improving housing conditions for security officers while supporting long-term investment in staff welfare.

Omollo said a significantly larger number of housing units were currently under construction or at various stages of implementation.

The Affordable Housing Programme is one of the flagship projects of President William Ruto’s administration under the Bottom-Up Economic Transformation Agenda.

The programme is primarily financed through the Affordable Housing Levy, which is deducted from employees’ salaries, with employers also making a corresponding contribution. The financing mechanism has attracted criticism and legal challenges since its introduction.

The government is now seeking to develop a revolving financing model in which revenue generated from completed and occupied housing developments would be used to finance subsequent phases of the programme.