The government has announced reforms to the Affordable Housing Programme in a move aimed at easing financial burden on Kenyans and boosting participation in the programme.
Following a Cabinet meeting chaired by President William Ruto on Tuesday, June 24, the Cabinet approved the Affordable Housing Regulations, 2024, which will serve as the legal framework to drive the implementation of the programme.
One of the most notable changes introduced in the new regulations is the reduction of the mandatory housing deposit from 10 percent to 5 percent.
"A key feature of the regulations is the reduction of the required housing deposit from 10% to 5%, lowering the barrier to entry for low- and middle-income earners. Other provisions include equitable housing allocation across income groups, access to low-interest or low-monthly-payment home loans, and structured deposit assistance for those unable to pay upfront," the Cabinet dispatch read.
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Additionally, the new rules offer a blueprint for how affordable and institutional housing will be developed and maintained.
“The regulations also guide the development, design, and maintenance of affordable and institutional housing across all counties. Additionally, they support long-term financing solutions for both development and purchase, and provide funding for maintenance and essential services within housing schemes," the dispatch further read.
Earlier in the month, Ruto announced that any Kenyan who has been contributing to the Housing Levy will be eligible to access a home loan of up to Ksh5 million at a single-digit interest rate.
Speaking during Madaraka Day celebrations on Sunday, June 1, he stated that the loan will not be limited to government-built houses but will apply to any housing unit available in the market.
"Fellow Kenyans, in recognition and appreciation of the sacrifice made by patriotic Kenyans through their contributions to the Housing Levy, I am pleased to announce today that 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 Ksh5 million at a single-digit interest rate, applicable toward any housing unit in the market," he said.
Ruto further explained that the loan will help contributors who already have mortgages by allowing them to offset their existing loans using the same arrangement.
“This facility will also enable contributors to offset existing mortgages, offering greater flexibility in their housing journey and allowing many to significantly ease their home financing costs,” he added.
