The National Treasury has allocated Sh27.7 billion for the Affordable Housing Programme for the financial year 2022/2023.
Of the proposed allocation, Sh4.6 billion to Kenya 58 Mortgage Refinance Company for enhancement of the company’s capital as well as for on-lending to primary mortgage lenders; Sh8.7 billion for construction of Affordable Housing Units as well as Sh1.2 billion for construction of Social Housing Units.
Presenting the budget estimates in Parliament, Treasury Cabinet Secretary Ukur Yatani said that the government has also mobilised resources to support the construction of affordable housing units and social housing units.
“Building on the gains and to ensure success of this initiative, I have proposed an allocation of Sh27.7 billion for the Affordable Housing Programme,” he said.
The government has constructed a few thousand affordable housing units but is short of the 500,000 units it promised at the onset of implementing the Big Four Agenda.
As of September 28, 2021, at least 2,235 affordable housing units have been occupied and construction is underway on many others, but nothing close to 500,000. The 2022 General Election is 11 months away.
Among the 2,235 occupied units in the country, 1,730 are at Park Road, Ngara, 250 in the Kisumu civil servants housing project, 152 in Machakos and 463 in Mavoko.
A mix of factors such as Covid-19 have held back the private sector from venturing into affordable housing as the State had envisioned.
