Affordable housing project gets Sh3.2bn in Ruto's budget

The Kenya Kwanza government has allocated Sh35.2 billion towards the Housing program.

Treasury CS Njuguna Ndung' u on Thursday in his budget proposals, said that the government has also mobilised resources to support the construction of affordable housing units and social housing units.

He announced part of the housing budget, Sh3.2 billion to go towards the affordable housing programme.

This is in line with President Ruto's plans to deliver 200,000 affordable housing units annually to Kenyans.

" To achieve the delivering of 250,000 housing units yearly and to ensure this initiative is a success, I propose the national assembly to effect the budget allocation of 35.2 billion for the housing programme," Ndung'u said.

This is an increase from 2022-2023 where the Programme was allocated a budget of Sh27.2 billion.

Of the proposed allocation, Sh5 billion was allocated to the Kenya Mortgage Refinance Company for enhancement of the company's capital as well as for lending to primary mortgage lenders.

An actual Sh3.2  billion for the construction of affordable housing units, as well as sh3.5 billion for the construction of social housing units.

In the current year Sh4.6 billion was allocated to the Kenya Mortgage Refinance Company,Sh8.7 billion for the construction of affordable housing units and  Sh1.2 billion for the construction of social housing units.

As of March 2023, 46,027 affordable housing units were under construction.

The units were in 9 sites which cumulatively created 43,000 direct opportunities for the youths.

Already, President Ruto has launched several projects in and outside Nairobi.

There are seven ongoing affordable housing projects that are set to produce 31,990 units in Nairobi.

The first project which was launched by President Ruto in October 2022 was  Kibra's Soweto B which was his first visit after winning the presidential elections.

According to Housing PS Charles Hinga, Soweto B will be the biggest social housing project undertaken in an informal settlement.

The project is part of the planned upgrade of the slum which has been divided into four zones and is being spearheaded by the Ministry of Housing.

In Mukuru kwa Reuben, Ruto launched the Sh15 billion project that will see the set up of 15,000 units.

The project has a unique background as the 55 acres of land had been grabbed by cartels before being recovered by the Ethics and Anti-Corruption Commission.

The land belonged to the Meteorological Department but was grabbed 24 years ago.

Upon recovery, the government turned it into useful public land, where  15,000 affordable housing units will be set up.

The EACC recovered the land that is worth more than Sh5 billion in August 2020.

On January 27, 2023, Ruto presided over the groundbreaking of the Shauri Moyo affordable housing project in Nairobi.

The project site comprises two parcels of land measuring approximately 16 acres, located along First Avenue Eastleigh Road, Nairobi.

The developer, Epco Builders Limited will construct 3,248 housing units at Sh10 billion.

In February, the Starehe project was launched which will provide over 6000 housing units.

Initially, about 300 houses occupied the 24 acres of land that had been occupied by tenants.

Pangani Housing Project which was being undertaken by the then Nairobi Metropolitan Service is still ongoing and is expected to deliver 1,562 housing units from the land previously occupied by 48 tenants

The government is on course to set up 5,280 units at Clay City, Nairobi, and Sh850 million housing project in Kasarani that will see 284 units constructed.

Construction is ongoing at the Jevanjee estates formally known as Bachelor quarters.

A total of 1,900 units will be developed from land that was previously occupied by 81 houses.