President William Ruto during the 62nd Madaraka Day celebrations at Raila Odinga Stadium in Homa Bay county yesterday /PCS
President William Ruto yesterday announced sweeping changes to the Affordable Housing Programme, introducing Sh5 million home loans for contributors to address growing public concerns over the Housing Levy’s benefits.
Speaking during the 62nd Madaraka Day celebrations at Raila Odinga Stadium in Homa Bay, the President described the reforms as a direct response to critics questioning the levy’s fairness and tangible returns for ordinary Kenyans.
He said proposed legislation, soon be tabled in Parliament, will allow active contributors to access low-interest loans at single-digit rates, applicable to any housing unit in the market.
The facility will also enable Kenyans to offset existing mortgages, easing financial pressures on middle- and low-income earners.
“Every shilling contributed will work for the contributor,” Ruto said.
“These reforms will ensure that every shilling contributed to the Housing Levy works for the contributor, whether through access to affordable housing, home loans, or mortgage relief.”
The announcement marks a strategic shift for the government, which has faced persistent criticism over the levy’s implementation.
The Housing Levy has provided fodder for Ruto’s rivals who have criticised the Affordable Housing Programme and levy. He promised to help ease deductions from Kenyans’ pay slips, of which the levy is part.
Opposition leaders and other critics have argued the mandatory 1.5 per cent deduction from salaried workers’ incomes lacked clear pathways to homeownership.
ODM leader Raila Odinga recently called for the housing scheme to be converted into a fund, while others questioned whether contributors would ever see direct benefits.
President Ruto, however, defended the programme as a transformative initiative that already is delivering results.
He highlighted the completion of 11,000 housing units out of a targeted 150,000, citing recent handovers in Mukuru, Nairobi and Homa Bay.
As an example of the programmer’s positive impact, the President shared the story of Jerusha Muthoni, a second-hand clothes trader who moved from Mukuru’s slums to a permanent home.
“Many people were skeptical that ordinary Kenyans could own homes through a rent-to-own method; today, that method is being fulfilled,” he said.
Beyond housing, the President emphasised the programme’s broader economic benefits, including the creation of 250,000 construction and related jobs across the 47 counties, plus new businesses springing up to serve residents.
Ruto also announced the nationwide rollout of Climate Worx, a youth employment initiative targeting 110,000 young people for tree planting, road construction, and environmental sanitation.
“We are not just offering a paycheck for today; we are providing financial relief and a bridge to future opportunities,” Ruto said.
The Madaraka Day event, was attended by Slovenia’s President Nataša Pirc Musar, Deputy President Kithure Kindiki, former Prime Minister Raila Odingam and other officials and leaders.
The event also served as a platform for the President to outline his administration’s achievements in health, agriculture and education.
He said the Social Health Authority (SHA) had disbursed Sh43 billion in claims over the past eight months, with 4.5 million Kenyans receiving fully covered treatment.
To address irregular premium payments in the informal sector, the government introduced Lipa SHA Pole Pole, a flexible contribution system allowing daily, weekly or monthly instalments.
In agriculture, Ruto cited a 50 per cent increase in food production due to fertiliser subsidies.
He also defended the defending the leasing of state-owned sugar mills to revive the sector, improve farmers’ livelihoods and lower prices.
The leasing of Nzoia, Miwani, Sony and Muhoroni has drawn sharp and divided reactions. Ruto assured Kenyans that no state assets had been sold.
On education, the President celebrated the success of the Competency-Based Curriculum and pledged to hire 24,000 additional teachers by January 2026.
Ruo also unveiled the Sh20 billion National Youth Opportunity Towards Advancement (Nyota) project, targeting 800,000 young people with skills training and entrepreneurial support.
“We are equipping a new generation to drive Kenya’s industrialisation and innovation,” he said.
Amid these announcements, opposition voices could be heard.
Raila Odinga urged the government to abandon the “colonial relic” of provincial administration and instead empower county governments, while also calling for justice for victims of police brutality.
He also welcomed Ruto’s recent gestures, including his public apology to the youth during the National Prayer Breakfast last Wednesday, but insisted that apologies must be accompanied by action.
“I saw that during the prayer breakfast recently, there were apologies being made by the Speaker [Moses Wetang’ula] and yourself [President Ruto], which is wonderful as a first step to reconciliation,” Raila said.
Kindiki emphasised intergenerational unity, saying, “No generation is superior to the other. A more united and prosperous Kenya can only be achieved through generational integration.
“I want to appeal that we also bring on board all generations, the younger people, the older people, the children and even the generations to come,” Kindiki said.
“We all find ourselves in that one ecosystem because we all belong to this country. No generation is superior to the other.”
Ruto, however, remained steadfast in his vision, dismissing critics and reaffirming his commitment to transformative policies.
“I want to persuade doubters that no one else is going to bring change except us,” he said.
“We must possess the self-belief to approach our tasks boldly, confidently and with determination.”
The new housing loan facility, if approved by Parliament, could mark a turning point in public perception of the Affordable Housing Programme.
As the government pushes forward with its Bottom-Up Economic Transformation Agenda, the success of these initiatives will hinge on their delivering tangible benefits to millions of Kenyans still waiting for change.
The President closed with a rallying cry, “Let us move forward with the spirit of our founding fathers, building a Kenya where hope and opportunity are a right for all.”
With the economy stabilised and reforms accelerating, his administration now faces the critical task of ensuring those words translate into widespread, lasting impact
Instant Analysis
The issue of ownership of affordable housing has been a hot debate, with most contributors questioning how they will benefit from their monthly tax for houses they don’t own and have no intention of buying. With the new facility, most Kenyans will be able to buy homes, hence, a more meaningful, rewarding justification of their tax.
