PS Hinga reveals ambitious housing plan as Housing levy surpasses ksh120 billion mark

Principal Secretary for Housing and Urban Development Charles Hinga has announced that the government has successfully collected approximately Ksh120 billion through the Housing Development Levy in a significant update on the Affordable Housing Program.

Speaking in Mombasa at a meeting with the National Assembly Departmental Committee on Housing, Urban Planning and Public Works, Hinga revealed that Ksh90 billions of this amount has already been spent on various housing projects across the country.

Hinga expressed confidence in the program’s financial future, anticipating a shift where payments for completed homes will eventually surpass levy collections.

“As we move forward and the number of completed units increases, payments for these houses are also rising. We anticipate a time when the inflow from house payments will exceed what we collect from the levy,” he stated.

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The PS also provided an update on the scale of the affordable housing program, confirming that it has surpassed the 200,000-unit mark, with 148,000 units currently under active construction.  He added that the ministry has also secured a pipeline of over 700,000 units, complete with precise data on their locations and the land parcels earmarked for construction.

“We are operational in 44 out of 47 counties. For the remaining three, we have advertised tenders. So, it’s only a matter of time before all counties are fully covered,” he said.

Highlighting the program’s substantial economic potential, Hinga pointed out that housing has one of the longest value chains in the economy.

“Almost every component of a house—whether it’s a bulb, a socket, a hinge—can be an industry by itself if done at scale.”

To empower local artisans, the ministry has ring-fenced Ksh11 billion for Jua Kali operators to supply three key items: doors, windows, and balustrades. Hinga revealed that 69 components have been identified as viable for local production.

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He further illustrated the program’s growing scale with the example of elevators: “Before the programme, the whole country only used around 750 elevators. With our projects alone, we now require 2,750 lifts. That’s almost four times the national demand.”

The government is now actively inviting global lift manufacturers to establish local assembly plants or full-scale production in Kenya to meet this demand and foster technical job creation.

During the Mombasa meeting, chaired by Emurua Dikirr MP Johana Ng’eno, concerns about unexplained delays and alleged divisions within the committee were addressed.

Ng’eno denied reports of internal wrangles, clarifying the committee’s conspicuous absence from the morning session.

“Of course, the PS was here alone—as a PS. I am here alone as the chair. We’re beginning our official session at 2.30 pm, and members will be present,” he explained.

He clarified that the meeting served to introduce committee members to regional project leads who manage housing projects in various counties. “This was a critical engagement. Most of the regional representatives had never met the committee. Members needed to connect with them to better understand the progress in their constituencies,” Ng’eno emphasised, also noting the flexibility of parliamentary proceedings. “Even Parliament is constitutionally allowed to sit anywhere, provided proper procedures are followed.”

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In a move to enhance accessibility, the ministry, following discussions with the Central Organisation of Trade Unions, has agreed to lower deposits for salaried workers from 10 per cent to 5 per cent. This addresses previous concerns raised by workers regarding being subjected to the same interest rates as non-contributors to the housing levy.

PS Hinga outlined a structured plan for home ownership, where upon completing payments, homeowners will receive keys and a sectional title.

“If you complete your payments over 13 years, you will get the title deed. That’s generational wealth. It’s how we build a nation—families inheriting homes,” he said, drawing a parallel to the “American Dream.”

To further facilitate home ownership, individuals earning less than Ksh25, 000 monthly can apply for deposit assistance from the Affordable Housing Board. For those earning between Ksh20, 000 and Ksh150, 000, the interest rate is fixed at six per cent, a significant reduction compared to commercial mortgage rates that typically range around 15 per cent.

By Cornelius korir

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