State allocates Sh2.79b for Affordable Housing research

The government has proposed a Sh2.79 billion allocation for research, feasibility assessments, and project planning and design under the Affordable Housing initiative for the 2025/2026 fiscal year, according to new budget estimates.

This marks a Sh586 million increase from the Sh1.73 billion earmarked in the 2024/2025 period under the Housing and Urban Development department.

A breakdown of the development budget for 2025/2026 further reveals that funding for other operational costs has risen sharply—from Sh2.1 billion to Sh3.83 billion.

In the same breath, civil works will receive Sh58.3 billion, up from Sh32.6 billion in the previous financial year.

Overall, the State Department has been allocated a substantial Sh119 billion—of which Sh2.89 billion is set aside for recurrent expenditure and Sh116.7 billion for development.

This is a significant leap from the Sh5.74 billion in development funding provided in 2024/2025.

This financial commitment comes as the government targets the registration of nearly 598,800 new users on the Boma Yangu housing portal in the upcoming year.

So far, more than 547,000 individuals have signed up on the platform, but only about 52,000 have actively contributed savings, collectively depositing over Ksh2.3 billion towards owning homes.

According to the Budget Policy Statement (BPS), the Affordable Housing Programme has seen progress, with 124,000 units at varying stages of completion across 75 sites in 37 counties.

These include housing for military personnel, police, correctional officers, students, and private sector participants.

Despite relatively low participation through the online platform, the department has made notable strides.

These include the construction of 605 affordable units in Bondeni, Nakuru; 462 units for police and prison staff; mortgage facilitation for 692 civil servants; refurbishment of 1,633 government-owned housing units; installation of 49 high-mast floodlights across counties; construction of 10 markets; establishment of 13 Constituency ABMT (Appropriate Building Materials and Technologies) centres; and the training of 4,110 individuals in ABMT application.

These developments come shortly after Auditor General Nancy Gathungu flagged the department for lacking valid ownership documents for the land on which some of the housing projects are being carried out.