The Government is targeting completion of 45,000 affordable housing units nationwide by the end of the year, as it moves to expand access to long-term and affordable financing for prospective homeowners.
Speaking at the Kenya Affordable Housing Conference (KAHC) 2026 in Naivasha, Principal Secretary for Housing and Urban Development Charles Hinga said the Affordable Housing Programme had moved beyond policy and was now driving construction, job creation and economic activity across the country.
Hinga said more than 280,000 units were currently under construction nationwide at a contract value of approximately Sh731.5 billion, with a further Sh300 billion in contracts pending approval. This is expected to push the total value of housing contracts under construction beyond Sh1 trillion.
He said the programme had generated between 640,000 and one million direct and indirect jobs, stimulating demand for cement, steel, timber, transport, plumbing, fabrication and professional services.
Hinga said the programme’s success should not be measured solely by the number of houses built, but by whether Kenyans could afford to occupy and own them.
He challenged the Kenya Mortgage Refinance Company (KMRC), banks, Savings and Credit Cooperative Societies (SACCOs), pension funds, insurance companies and development partners to work together towards lowering mortgage rates and expanding access to affordable housing finance.
Hinga described the housing programme as an economic transformation instrument capable of building industries, transferring skills and creating employment.
He cited plans for local manufacture and assembly of housing components, saying the Government was seeking to attract international manufacturers to establish production facilities in Kenya.
He said housing developments were being paired with essential infrastructure, including water, sanitation, electricity, schools, health facilities, roads, recreational facilities, broadband connectivity and clean cooking solutions.
“The Government will make 45,000 housing units available to the market between now and December, valued at approximately Sh52 billion, and I challenge banks and SACCOs to help prospective homeowners access financing,” said Hinga.
He said the 45,000 units could generate approximately Sh1.5 billion in origination fees for financial institutions and projected that the housing finance portfolio could grow from Sh52 billion to about Sh200 billion within 12 months.
KMRC Chief Executive Officer Johnstone Oltetia said the company was focused on bridging the gap between housing supply and Kenyans’ ability to purchase homes.
He said KMRC-backed home loans attracted single-digit interest rates of between nine and 9.5 per cent, with repayment periods of up to 25 years at fixed rates.
Oltetia said KMRC, established five years ago, had mobilised Sh27 billion and was issuing a Sh3 billion sustainability bond, bringing its total loan portfolio to Sh30 billion for prospective homeowners seeking properties valued between Sh4.5 million and Sh10.5 million.
He added that efforts to lower interest rates had enabled more than 6,200 Kenyans to access the loans, with demand continuing to rise.
Oltetia said the number of mortgages nationally had grown from about 25,000 when KMRC began operations to more than 30,000, with the outstanding mortgage value now exceeding Sh280 billion.
He said KMRC had established mortgage guarantee arrangements for low-income earners, matching their financial capacity against KMRC guarantees.
The company would also tap into the Affordable Housing Programme to help more Kenyans access low-interest mortgages, particularly as the 280,000 units under construction near completion.
According to data from the Boma Yangu platform, 1.26 million Kenyans had registered, with members saving more than Sh5.2 billion towards housing deposits.
The programme has also benefited the Jua Kali sector and micro, small and medium enterprises, with the Government earmarking more than Sh11 billion to supply critical inputs.
Nakuru County Executive Committee Member for Lands, Physical Planning, Housing and Urban Development John Kihagi said the county was working with the national government and the Affordable Housing Board to ensure projects were established within properly planned and serviced communities.
He said the developments would incorporate essential services and facilities, including schools, hospitals, water, sewerage and market facilities.
By Erastus Gichohi and Beatrice Wanjiku
