President William Ruto has revealed that his administration will soon present to Parliament a proposal to amend existing housing laws, enabling contributors to access affordable home loans of up to Ksh 5 million at single-digit interest rates. Speaking during Madaraka Day Celebrations, the president said the loans would be applicable not only to government-constructed housing but to any housing unit in the market.
”I am pleased to announce today, that we shall be proposing to parliament a reform to the laws that will allow any contributor to access an affordable home loan of up to 5million shillings at a single digit interest rate applicable towards any housing unit in the market.” said the president.
The proposed law also includes provisions to allow contributors to offset existing mortgages, offering greater flexibility and reducing the financial burden on middle- and low-income earners.
President Ruto termed the reforms as a direct response to the public’s contribution through the Housing Levy, calling it a way to ensure that “every shilling contributed works for the contributor.” He noted that the legislation is part of a broader strategy to democratize homeownership and provide financial relief to working Kenyans.
The announcement comes amid a national rollout of the Affordable Housing Programme, with over 11,000 units completed and a target of 150,000 units under construction. The programme, anchored in the administration’s Bottom-Up Economic Transformation Agenda (BETA), has been positioned as a pillar of socio-economic reform aimed at empowering citizens through asset ownership.
The programme offers various housing options, with interest rates ranging from 3% for social housing to 9% for market-rate units, depending on the category. The proposal seeks to enhance the existing framework and provide more opportunities for Kenyans to own homes.
The president praised the progress the government has made so far building affordable houses across the country, saying ”If you didn’t understand what we meant by bottom-up, now you do; if you didn’t believe, now you do; and if you thought it was a fantasy, as contributors to the housing levy, you are now witnessing and making history that will be remembered for generations to come.”
According to the president the housing project is a deliberate plan by the government to uplift lives, restore dignity and offer hope to communities.
The President also used the occasion to highlight personal stories of Kenyans who have already benefited from the housing programme, such as those from Mukuru in Nairobi and Homa Bay County.
