Mixed reactions of discontent and corruption claims cloud Kenya’s Affordable Housing Programme three years on

Kenya’s flagship Affordable Housing Programme (AHP), a cornerstone of President William Ruto’s administration continue to face growing discontent and corruption allegations even as the government insists it is on course to deliver 195,578 housing units countrywide within the next three years.

Launched as part of the government’s Bottom-Up Economic Transformation Agenda (BETA), the programme was meant to ease the housing deficit currently estimated at over two million units. It is also positioned as a driver of job creation, with thousands of youths expected to benefit from construction-related employment opportunities.

Despite the lofty promises, political leaders and the wider general public have continued to express skepticism over the project with some terming it as a grand scam.

Speaking in January this year during the launch of DAP-K headquarters in Nairobi, Democracy for Citizens Party (DCP) leader and former Deputy President Rigathi Gachagua claimed the project was riddled with corruption and that it was meant to benefit a few.

“I believed the project was about job creation until it came to my attention that it has nothing to do with that,” Gachagua claimed.

He said once a new government is sworn in, the housing levy will have to be abolished to restore the payslips’ dignity.

Many Kenyans argue that the project is turning into yet another government initiative that benefits politically connected individuals rather than addressing the plight of ordinary citizens.

Civil society groups and urban housing advocates have raised concerns that the cost of the units remains unaffordable for low- and middle-income households, the very groups the programme was meant to uplift. “If the cheapest house costs several million shillings, how does a teacher, boda boda rider, or a nurse afford that?” posed one Nairobi-based activist.

Adding to the controversy are allegations of irregular procurement, inflated construction costs, and favoritism in the allocation of tenders. Opposition politicians have accused senior officials of turning the project into a cash cow, warning that billions of taxpayers’ money could be lost.

Questions have also been raised about the lack of transparency in how contracts are awarded, with some reports indicating that firms linked to influential political figures are dominating the lucrative construction deals.

However, President William Ruto has championed the project as transformational.

Housing Principal Secretary Charles Hinga and other senior officials have also defended the programme, insisting that “every coin is accounted for” and that stringent monitoring mechanisms are in place. The government maintains that the delivery of nearly 200,000 units in three years is realistic, citing ongoing construction sites in Nairobi, Nakuru, Kisumu, Machakos, Mombasa, and other counties.

“We are building homes for ordinary Kenyans, and in the process creating thousands of jobs. The noise from detractors will not derail this agenda,” said President Ruto recently.

The housing debate reflects a wider trust deficit between the government and citizens. Critics point out that several past mega-projects—from dams to medical equipment leasing—were riddled with graft and ended up burdening taxpayers without delivering the promised services.

In December last year, The Informer Media Group exclusively revealed how one of the president William Ruto’s pet initiatives whose success or failure would mark his legacy projects, the affordable housing project, could be drifting to jeopardy over non-payments of project consultants.

Through a petition presented to the National Assembly dated November 27, 2024 and received at the National Assembly Main Records Unit on November 29, 2024, the petition indicates the consultants are owed outstanding dues totaling to Sh1billion for the last ten months by the State Department of Housing and Urban Development under the Ministry of Lands, Public Works, Housing and Urban Development headed by Cabinet Secretary Alice Wahome.

However, when contacted by The Informer Media Group for comment, Principal Secretary, State Department of Housing and Urban Development Charles Hinga, through Housing Secretary Said Athman, Hinga denied claims of outstanding debts owed to the consultants as claimed.

Instead, Athman accused the consultants for not submitting their invoices on time thus occasioning the payment delays as from July 2024.

Further, Athman asserted that some consultants have not submitted the proper documentation and “valid submissions to start processing from the consultants.”

“There has not been delays for 10 months. Consultants were engaged in March 2024 and assigned projects. The first of these projects were contracted in July 2024 and the consultants who did the work were paid the same month in July 2024 for designing (1.5 per cent), site masterplan and preparation of tender documentation (10 per cent of the fees).”

“From July 2024, the supervision consultants were due to submit invoices for inception of works (10 per cent of supervision fees) in August 2024 and 1st Quarter fees in October 2024. The invoices are yet to be received. This is largely due to the fact, as an initial payment to most them, getting proper documentation has taken time. The consultants also have organized themselves to do a single joint submission of all invoices at the same time. The State Department has not received any valid submissions to start processing from the consultants from July 2024.” Athman added.

In the petition presented to the National Assembly and signed by Karori Maina, the consultants drawn from the Institution of Engineers of Kenya (IEK), Institute of Quantity Surveyors of Kenya (IQSK) and Architectural Association of Kenya (AAK) appealed to Parliament to ensure Sh1billion outstanding dues owed to consultants is settled.

The petition also sought intervention of the National Assembly to ensure the State Department finalises consultants’ contracts which are still pending.

“The continued lack of formal engagement violates the consultants’ rights under Article 41 of the constitution, which guarantees fair labour practices.” The petition read in part.

Our investigations established that no contracts have been signed between the consultants and the Housing Department so far despite the ongoing construction works.

A letter of the agreement signed by PS Hinga dated September 18, 2024 seen by The Informer Media Group, Hinga told the consultants that they would be engaged in Framework Agreements arrangement participating “in call-offs from time to time”.

“Your tender dated November 22, 2023 for Procurement of Consultancy Services for Project Management and Construction Management for Affordable Housing, Tender No. MLPWHUD/SDHUD/AHP/192/2023-2024 is hereby accepted. You are hereby notified that this shall be a framework agreement where you will be required to participate in calls-offs orders from time to time.” The letter signed by PS Hinga reads in part.

In his response to our queries, Athman said that all the consultants signed Agreements in March 2024 save for the Conditions of the Agreement which are currently under negotiation.

“For avoidance of doubt, the PS, in August 2024, at a meeting with consultants, accepted the request from consultants to invoice for the inception, which was not in the agreement. Again in September 2024, at a retreat with consultants he decried their not invoicing and accepted them to invoice both for the inception and 1st Quarter. The State Department has the necessary resources to pay the consultants. The consultants engaged have made a major contribution towards increasing our capacity to scale up, ensuring quality of AHP designs and supervision and to support the program in new AHP products. We continue to work closely with the professional associations and the universities.” Athman added.

He, however denied claims of infighting among top ministry officials which has allegedly threatened putting the housing programme in disarray.

“There is no wrangling amongst senior officials who work diligently and tirelessly as a team. AHP is a new dynamic programme and expectedly, will trigger difference of opinions, particularly amongst senior persons who by their own right are professionals in their field. This is very healthy to ensure that different perspectives are fronted, discussed and agreed upon. These perspectives are not personal but professional. For avoidance of doubt, we do not have any wrangling amongst senior officials.” Athman added.

In his petition, Karori call upon the National Assembly to investigate leadership wrangles “among ministry officials and take appropriate action to prevent further disruption of the programme.” Karori said.

Today, through a press statement by the Ministry of Lands, Public Works, Housing and Urban Development headed by CA Wahome said that there are over 195,578 housing units under development across 111 constituencies in 44 out of the 47 counties.

Currently, there are over 195,578 housing units under development across 111 constituencies in 44 out of the 47 counties. To ensure equal chance for all Kenyans to own a home, new Affordable Housing and Institutional Housing Projects will soon be launched in Marsabit, Turkana and West Pokot counties once the implementation planning is complete.

Since 2022, the AHP projects have provided 330,000 direct and indirect jobs where Sh11billion has been ringfenced for the Jua Kali and Micro, Small and Medium Enterprises (MSMEs) engaged in the Affordable Housing and Markets Programmes.

“We are on course to achieve a goal of 2 jobs per unit – one directly onsite and one indirectly in the wider economy,” explains Mr. Charles Hinga, Principal Secretary, State Department for Housing and Urban Development.

“We will ringfence the assembly and manufacturing of key components for our mechanical, electrical, and plumbing sectors,” he added.

Hinga said the sale of the units started in November 2024 when the government announced the release of 4,888 housing units in 24 project sites across the country.