Housing Levy raises billions, but Ruto’s housing promise needs more money
Kenya’s Affordable Housing Programme has a funding problem that the government can no longer avoid. The 1.5 per cent Housing Levy collects about Ksh6 billion every month, but Housing Principal Secretary Charles Hinga says that money cannot sustain the government’s target of constructing 200,000 homes every year. That means the levy, despite being a mandatory […]
Kenya’s Affordable Housing Programme is facing a funding crisis, despite the 1.5 per cent Housing Levy raising about Ksh6 billion each month. Housing Principal Secretary Charles Hinga revealed that this monthly collection is insufficient to sustain the government’s goal of building 200,000 homes annually. At current collection rates, the Ksh6 billion monthly levy would amount to Ksh72 billion annually, but dividing it equally among the 200,000 targeted units would mean Ksh360,000 per unit, which does not cover the actual construction costs.
The Affordable Housing Fund, which receives both levy collections and additional funding sources, may need to be supplemented with long-term financing arrangements from international organizations like the World Bank to meet the ambitious housing target announced by President William Ruto.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
