Over 130,000 housing units underway as state allocates Sh11 billion to Jua Kali artisans
The construction covers multiple housing categories, including 52,909 units under the Affordable Housing Programme (AHP), 56,753 social housing units, and 12,472 private sector-supported projects.
The Kenya Kwanza Affordable Housing Programme is reported to have 130,988 housing units currently under construction, creating 250,000 direct and indirect jobs across the country.
According to the National Development Implementation Committee (NDIC), chaired by Prime Cabinet Secretary Musalia Mudavadi, the construction covers multiple housing categories, including 52,909 units under the Affordable Housing Programme (AHP), 56,753 social housing units, and 12,472 private sector-supported projects.
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Additionally, 2,184 housing units are being built for the police, while 160 are designated for prison staff.
Beyond housing, the initiative has extended its impact to small businesses and artisans. The government has allocated Sh11 billion to support Jua Kali artisans and Micro, Small, and Medium Enterprises (MSMEs), ensuring that local businesses benefit from the project.
“The government has committed Sh11 billion to support Jua Kali and MSMEs, ensuring that local businesses benefit from this ambitious housing plan,” NDIC said in a despatch on Wednesday.
The programme's ripple effect is projected to generate over one million jobs once fully implemented.
At the same time, 128,656 housing units have been advertised for development, alongside plans for 156,484 new student accommodation beds to ease congestion in institutions of higher learning.
The Affordable Housing Programme is funded through the Housing Levy, introduced by the Affordable Housing Act 2024, which requires employees to contribute 1.5 per cent of their salaries, with employers matching the amount.
The levy, managed by the Affordable Housing Board, is aimed at ensuring the government achieves its target of constructing 200,000 affordable housing units annually.
Although the levy faced legal challenges, the High Court ruled on October 22 that it was constitutional, allowing full implementation of the government’s plan.
A petition filed by Busia Senator Okiya Omtatah, challenging the levy’s legality and citing lack of public participation, was dismissed.
Justices Olga Sewe, John Chigiti, and Josephine Mong’are ruled that Parliament has the authority to impose taxes under Article 95 of the Constitution and that the levy applies uniformly to all Kenyans.
However, contributors to the housing levy will not automatically receive houses under the scheme. Housing Cabinet Secretary Alice Wahome clarified that those seeking to own homes must apply for financing.
“The money you are contributing is not supposed to give you a house; it is basically the offtake. It helps us build the house, but after that, it is you who actually pays for that house. We are not building and giving to you. It is like tenant purchase—you rent to own,” Wahome stated during an interview with NTV’s Fixing the Nation.
The government has emphasized that the rent-to-own scheme will run for up to 30 years, providing Kenyans with flexible payment plans.
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