The government has reaffirmed its commitment to addressing Kenya’s housing deficit through a significant budgetary boost, with Treasury allocating Ksh 128.3 billion to affordable housing and urban development initiatives in the 2024/25 financial year.
While presenting the budget to Parliament on Thursday, Treasury Cabinet Secretary John Mbadi emphasized that the Affordable Housing Programme not only aims to provide decent shelter but also serves as a powerful engine for job creation and economic stimulation. “The Programme is creating jobs for the youth both directly in construction and indirectly through the production and supply of building materials,” he stated.
Out of the total allocation, Ksh 64.5 billion will go toward the construction of Affordable Housing Units, while Ksh 10.5 billion has been set aside for Social Housing Units. An additional Ksh 16.5 billion will be directed towards developing social and physical infrastructure to support these housing projects.
The Kenya Urban Programme (KenUP) will receive Ksh 13.4 billion, further anchoring urban development goals. Other allocations include Ksh 7.2 billion for Phase II of the Kenya Informal Settlement Improvement Project, which aims to uplift living conditions in slums, and Ksh 3.5 billion for constructing housing units for the National Police Service and Kenya Prisons.
To support climate resilience and safer urban environments, Ksh 500 million has been earmarked for the Building Climate Resilience of the Urban Poor Programme (BCRUP), Ksh 184 million for constructing footbridges, and Ksh 454 million for the construction of County Headquarters.
Significantly, Ksh 2.6 billion has been allocated for the Regulation and Development of the Construction Industry. According to CS Mbadi, this will help ensure safety, enforce compliance with building codes, and promote sustainable construction practices.
The Affordable Housing Programme is a cornerstone of the Kenya Kwanza administration’s agenda, with a long-term goal to deliver hundreds of thousands of housing units countrywide. The initiative is also expected to unlock opportunities for local manufacturers, artisans, and youth in the construction sector, ultimately contributing to national economic growth and improved living standards.
