Affordable Housing in Kenya: Current Progress and Challenges of the Flagship Initiative image: Courtesy

Who qualifies for the Boma Yangu Housing?

Affordable housing remains a cornerstone of Kenya’s development agenda, promising dignity and shelter to millions of citizens. But where does the country stand today in realizing this dream?

The Vision Behind Affordable Housing

Kenya’s affordable housing agenda is one of the Big Four Agenda priorities launched in 2017 by former President Uhuru Kenyatta’s government to address critical development gaps.

The plan aimed to provide at least 500,000 affordable housing units to Kenyans by the end of 2022, targeting low- and middle-income households.

This ambitious program has been marketed as a solution to the country’s urban housing deficit, which stands at over 2 million units, with an annual demand of 250,000 units far outpacing the 50,000 units currently supplied.

The initiative also promises to spur economic growth by creating job opportunities in the construction sector, boosting local manufacturing, and attracting foreign investment into the real estate market.

Current Status of Affordable Housing Projects in Kenya

President William Ruto, who came in power in 2023, also adopted and expanded the Affordable Housing in his development agenda, positioning it as a flagship pillar of his administration’s economic plan. He went ahead to introduced a housing levy to finance the project.  Salaried employees contribute 3% of their income, matched by their employers, to a national housing fund.

Ruto’s administration relies  heavily on Public-Private Partnerships to attract investment into the housing sector. The government provides land and infrastructure, while private developers are tasked with construction and management, ensuring affordable pricing for beneficiaries.

President Ruto has emphasized that affordable housing is not just a social priority but an economic enabler, designed to stimulate job creation, local manufacturing, and homeownership for the masses. Construction of 200,000 Units Annually

His adminstarion set an ambitious target of building 200,000 affordable housing units annually, with a focus on low-income and middle-class families. This revised approach prioritizes smaller, scalable projects spread across counties to ensure equitable distribution

Despite the enthusiasm surrounding the program, progress has been slower than expected, with only 12% of the targeted units reportedly completed as of late 2024.

Deputy President Kithure Kindiki today affirmed the government’s commitment to bridging the affordable housing gaps saying some units will be ready for occupation next year.

According to the DP, 100 affordable housing projects spanning 45 counties are in various stages of completion, expected to deliver a total of 135,515 housing units.

He noted that the initiative has provided job opportunities for more than 200,000 people as part of the government’s job creation initiative.

“The ongoing housing projects have availed more than Sh 4 billion worth of work for the Jua Kali sector and accelerated growth in the manufacturing of cement, steel and other construction materials,” he said.

He further revealed that 550,000 citizens have registered for home ownership through the Boma Yangu platform, saying allocations will begin once the housing projects are complete.

How to Register for affordable housing/Boma yangu

To register for an affordable housing unit, you need to go to the Boma Yangu website and sign up.

Key achievements and ongoing projects include:

Park Road, Nairobi
Located in Ngara, this flagship project features 1,370 housing units completed and occupied by 2021. The units are priced to cater to low- and middle-income earners, with monthly payments starting from Ksh 6,500.

Buxton Point, Mombasa

A redevelopment project replacing old council housing, Buxton Point is set to deliver 1,900 units, with the first phase completed in 2023. However, concerns have been raised about affordability for the displaced residents.

Bondeni Housing, Nakuru

This project targets low-income earners, providing 605 housing units within Nakuru’s urban sprawl. Phase one of the project is nearing completion, with allocations already underway.

Machakos and Kisumu Projects

Counties such as Machakos and Kisumu are also advancing affordable housing projects, but implementation has been hindered by budget constraints and disputes over land use.

Gachie Project, Kiambu County

Slated to deliver 15,000 housing units, this initiative is part of a public-private partnership model. The groundbreaking ceremony was held in 2024, with completion expected by 2027.

Gikambura, Kiambu County

Launched in early 2024, this project will deliver 5,000 housing units with a mix of rental and homeownership options.

Shauri Moyo, Nairobi

A major redevelopment project launched in mid-2024, expected to deliver 3,500 units by 2026.

Challenges Facing Kenya’s Affordable Housing Agenda

While these projects indicate progress, the government has fallen short of meeting the overall target due to a combination of challenges.

1. High Costs of Land and Construction Materials
Land prices in urban areas such as Nairobi and Mombasa remain prohibitively high, accounting for up to 70% of project costs. Coupled with rising construction material costs, this has made it difficult to deliver units within the intended price range.

2. Limited Financing Models
Although the government has introduced measures such as the Affordable Housing Fund and incentivized private sector participation, financing remains a bottleneck. Many low-income households cannot access mortgages due to stringent lending conditions, leaving the target demographic underserved.

3. Public-Private Partnership (PPP) Challenges
The government has leaned heavily on PPPs to drive affordable housing projects, but unclear policy frameworks and bureaucratic delays have hindered their success. Some private developers also prioritize profit over affordability, pricing units beyond the reach of low-income earners.

4. Resistance from Local Communities
In some areas, affordable housing projects have faced opposition from communities over issues such as displacement, inadequate compensation, and loss of cultural heritage. This resistance has led to project delays and increased costs.

5. Lack of Infrastructure in Target Areas
Affordable housing units are often planned in peri-urban areas where infrastructure such as roads, water, and electricity is either limited or entirely absent. This lack of amenities has discouraged uptake by potential homeowners.

5. Mistrust/Community Goodwill – Kenyans who are already used to the massive plunder of public resources by government officials have little faith in the project and consider it as another avenue for the government to loot and dish out afew housing units to their cronies.

The success of Kenya’s affordable housing project will depend on the government’s ability to navigate existing challenges and ensure that the promise of affordable housing does not remain a distant dream for millions of Kenyans.