The dream of owning a home is set to become a reality for more Kenyans, following President William Ruto’s announcement of affordable home loans during the 61st Madaraka Day celebrations in Homa Bay County.
In a move aimed at making housing more accessible, President Ruto disclosed that the government would propose reforms to the Housing Levy law. These reforms will allow contributors to access home loans of up to Ksh5 million at single-digit interest rates marking a significant shift in the country’s housing finance landscape.
“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,” President Ruto stated.
The President further explained that these reforms would also allow contributors to use the facility to offset existing mortgages. This flexibility is expected to ease the financial burden on families and make the homeownership journey more achievable.
President Ruto hailed the Affordable Housing Programme as a “revolution” that is not only addressing the housing deficit but also creating socio-economic change, especially in informal settlements. He highlighted how families are transitioning from overcrowded slums into permanent homes with essential amenities such as electricity, running water, and clean cooking gas.
So far, over 250,000 jobs have been created under the programme, underscoring its impact on employment and economic growth. Since construction began in September 2022, the government has completed 11,000 housing units, with a total target of 150,000 units nationwide.
“Very soon, I shall be handing over keys to new homeowners in Bahati and Elburgon in Nakuru County, Mabera in Kuria West, Emgwen in Nandi, Milimani in Kakamega and Vihiga counties, Nanyuki, and many other parts of the country,” he added.
This initiative is expected to transform Kenya’s housing sector by ensuring that every shilling contributed to the Housing Levy directly benefits contributors, either through affordable housing access or mortgage relief.
