The government is rolling out new financing measures to help more Kenyans own homes, calling housing a key pillar of economic growth and job creation.At the centre of the push is President William Ruto’s Affordable Housing Programme.
In the 2026/27 Budget, officials unveiled a plan to mobilise nearly Sh238 billion through Housing Levy collections, sale of completed units, and a new borrowing model called securitisation.
The goal is to speed up construction and close the annual housing deficit estimated at over 200,000 units.
To lower entry barriers, the government has cut the deposit required for affordable housing units from 10 per cent to 5 per cent.
The change, announced during Labour Day celebrations, applies to all salaried Kenyans and is now in the allocation regulations.
For low-income earners, officials have also introduced relief such as waived deposits for those earning below Sh20,000.
More than 30,000 applicants have already paid deposits and are awaiting allocation, with 320,000 units at various stages of construction.
Beyond building, the state is also expanding financing.
Partnerships like the KDF mortgage scheme offer concessional 4 per cent loans, while tax relief on construction mortgages allows borrowers to deduct up to Sh360,000 in interest.
Officials argue that making finance accessible, not just building houses, is what will finally turn renters into homeowners.
