Affordable housing drive boosted as housing receives Sh128.3 billion in 2025/26 budget
Mbadi underscored the government’s unwavering commitment to addressing the country’s housing deficit and improving urban infrastructure.
The government has stepped up its investment in housing and urban development, with Treasury Cabinet Secretary John Mbadi announcing a robust allocation of Sh128.3 billion for the sector in the 2025/26 financial year.
Presenting the national budget estimates in Parliament on Thursday, Treasury Cabinet Secretary John Mbadi announced an allocation of Sh128.3 billion to the sub-sector, representing a notable rise from Sh92.1 billion allocated in the previous financial year.
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This marks an increase of Sh36.2 billion, the largest year-on-year growth the sector has seen in recent times.
In the 2022/2023 financial year, the government allocated sh27.7 billion to the housing sector, with sh8.7 billion earmarked for the construction of affordable housing units.
CS Mbadi underscored the government’s unwavering commitment to addressing the country’s housing deficit and improving urban infrastructure.
Decent and safe shelter
He reiterated that the affordable housing programme remains central to this effort, not only to provide decent and safe shelter for Kenyans but also to generate employment opportunities, particularly for the youth.
“Mr Speaker, the government is committed to facilitating the construction of decent, safe and affordable houses for Kenyans,” said Mbadi.
Out of the total allocation, Sh64.5 billion has been earmarked for the construction of Affordable Housing Units, while Sh10.5 billion will go toward the development of social housing units.
“ I have proposed an allocation of Sh128.3 billion for the housing, urban development and public works sub-sectors. This includes: Sh13.4 billion under the Kenya Urban Programme; Sh64.5 billion for the construction of affordable housing units; Sh10.5 billion for the construction of social housing units; and Sh16.5 billion for social and physical infrastructure,” he added.
Kenya Urban Programme
In addition, the Kenya Urban Programme, which focuses on enhancing urban planning, infrastructure, and service delivery in towns and cities across the country, has received an allocation of Sh13.4 billion.
The government has also proposed sh7.2 billion for the second phase of the Kenya Informal Settlement Project. The amount represents 25.79 per cent of the actual national revenue raised in the 2020/21 fiscal year, according to the latest audited accounts.
It marks an increase of Sh17.6 billion from the Sh387.4 billion allocated in the current 2024/25 budget cycle.
“This budget reaffirms the priority policies and strategies aimed at stimulating economic recovery,” Mbadi said during his first budget presentation since taking over the docket.
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