Housing and Urban Development Principal Secretary Charles Hinga has warned that the Affordable Housing Programme (AHP) risks stalling due to a funding shortfall.
Appearing before the National Assembly Housing Committee on Wednesday, March 18, PS Hinga noted that a reduction of Ksh800 million has been made to AHP’s donor funding allocation in the proposed 2025-2026 financial year supplementary budget.
The Housing PS said the reduction lowers the total budget from Ksh13.341 billion to Ksh12.541 billion.
PS Hinga warned the Housing Committee that the reduction will significantly affect the implementation of the programme.
In his presentation to the committee, PS Hinga said that there are currently 1,700 ongoing housing projects.
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Hinga also highlighted a personnel shortage, noting that some officers are working up to three shifts due to understaffing.
Housing Committee Vice Chairperson Mugambi Rindikiri questioned PS Hinga on whether the State Department for Housing and Urban Development had anticipated the funding shortfall and why additional staff had not been recruited.
Hinga, in response, told the committee that the department had anticipated the funding inadequacy, having already utilised 80 per cent of the allocated budget.
The Housing PS also said the department saved some funds in Treasury Bills, but the National Treasury has declined to allow access to the funds.
Hinga also said the department had requested additional personnel, but the request was not approved.
The Committee advised that it will engage the Cabinet Secretary for the National Treasury and Economic Planning to seek further clarification on the matter.
The Affordable Housing Programme is one of President William Ruto’s flagship projects.
Since 2022, the programme has already delivered 3,171 completed units, including landmark projects such as Buxton Phase One in Mombasa (584 units), Nakuru Bondeni (605 units), Boma Yangu Mukuru (1,080 units), Boma Yangu Homa Bay (110 units), and housing for disciplined forces (792 units).
The housing initiative has also generated significant employment opportunities since its launch in 2022, creating more than 330,000 direct and indirect jobs.
Projections indicate that up to one million jobs will be generated over the course of the project cycle.
