Ruto proposes law to allow housing levy contributors access Sh5 million loans
Since taking office in September 2022, President Ruto has been a staunch advocate for the Affordable Housing Programme, a cornerstone of the Kenya Kwanza government's agenda to provide affordable homes to millions of Kenyans.
President William Ruto has announced plans to table a new law in Parliament that will allow individuals contributing to the Housing Levy to secure affordable home loans of up to Sh5 million, enabling them to buy any such units currently available in the market.
He made the announcement on Sunday during the 62nd Madaraka Day celebrations in Homa Bay County, noting that if the scheme proposal becomes law, contributors will also be able to clear outstanding mortgages.
More To Read
- UK to inject Sh266 billion into Kenya under new deal focused on trade, climate and tech
- Choice of Gen Zs: Why top politicians are scrambling for the votes of Gen Zs
- You now carry the weight of Kenya’s peace and security, Ruto tells new KDF chiefs
- Ruto: It cannot be business as usual after police attacks, firearm thefts, arson
- Ruto condemns June 25 deadly protests, orders arrest of perpetrators
- Ruto: You can't save the country by burning it, if you want me to go, show me your plan
"We shall be proposing to parliament a reform to the law that will allow any contributor to access an affordable home loan of up to Sh5 million at a single-digit interest rate," he said.
"This facility will also enable contributors to offset existing mortgages, offering greater flexibility in their housing journey and allowing many to significantly ease their house financing costs."
Since taking office in September 2022, President Ruto has been a staunch advocate for the Affordable Housing Programme, a cornerstone of the Kenya Kwanza government's agenda to provide affordable homes to millions of Kenyans.
His announcement comes nearly two weeks after he unveiled the affordable housing project in Mukuru Kwa Njenga, Embakasi South, Nairobi.
Spread across 56 acres, the Mukuru project features 13,248 housing units. According to Ruto, the development has so far attracted an investment of Sh11 billion, directly impacting the construction sector and surrounding communities.
"These keys do not just open doors; these are keys that will unlock opportunity, safety, pride, equity, and intergenerational upliftment," Ruto said during the launch.
The Mukuru Kwa Njenga estate includes a mix of 5,616 bedsitters in 26 blocks, 3,024 one-bedroom units in 14 blocks, and 4,608 two-bedroom apartments in 48 blocks. The homes operate under a rent-to-own scheme, where monthly payments count as mortgage instalments.
Bedsitters go for Sh3,900 per month, one-bedrooms for Sh4,000, and two-bedrooms for Sh5,000. The homes are designed to serve three income brackets: social housing for those earning Sh20,000 or less, affordable housing for those earning up to Sh149,000, and upper-middle-income housing for higher earners.
President Ruto also oversaw the handover of 110 completed housing units in Homa Bay to new homeowners as part of the government's continued roll-out of affordable housing projects across the country.
The government is preparing to unveil similar projects in Nakuru, Kuria West, Nandi, Kakamega, Vihiga, Nanyuki and other targeted regions across the country.
Top Stories Today
