- Affordable housing bill proposes cutting loan default notice from 90 to 45 days and property sale notice from 40 to 20 days.
- MPs have raised concerns that the shorter timelines could expose borrowers to faster foreclosures and reduce protections.
- National Assembly committees are reviewing the proposal, with a final report expected by August 13, 2026.
Parliament is reviewing a bill that would speed up loan recovery for affordable housing, cutting notice periods but raising fears for borrowers.
The Business Laws Amendment Bill, Senate Bill No. 51 of 2024, proposes to cut the period lenders must wait before enforcing a loan from 90 days to 45 days. It would also reduce the notice period before a property sale from 40 days to 20 days.
These changes are set out in Clauses 14 and 15 of the Bill. Senators passed the Bill without amendments, and it is now before the National Assembly.
Only affordable housing properties would be affected. Timelines for other categories of property would stay the same.
Backers of the reforms say quicker recovery processes would lower lending risks and boost investor confidence. They argue this could encourage more financial institutions to fund affordable housing, helping speed up delivery under the government’s affordable housing programme.
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Not everyone on the National Assembly’s Departmental Committee on Lands agrees. Some members worry that shorter timelines could leave homeowners exposed if they fall behind on payments.
Committee Chairperson Joash Nyamoko said the panel’s task is to weigh investment against borrowers’ rights. He said members must check whether the proposed timelines are fair and workable.
Kirinyaga Central Member of Parliament (MP) Joseph Gitari questioned whether the shorter timelines would leave room for borrowers facing short term financial difficulty. Kilome MP Thaddeus Nzambia raised a separate concern, asking whether the changes might put off prospective buyers if mortgages are seen as carrying a higher risk of foreclosure.
Nyamoko said the committee plans to consult lenders, developers, legal experts and consumer representatives before finalising its recommendations. Its report will then go to the Departmental Committee on Trade, Industry and Cooperatives.
Under Standing Order 127, the Lands committee is expected to submit its findings before the Trade, Industry and Cooperatives committee tables its final report by August 13, 2026. Some legislators have said the timeframe is tight and may need to be extended.
The review’s outcome will shape how loan recovery works under the Affordable Housing Programme, and whether the balance between faster recovery and borrower protection holds up.
By Benedict Aoya
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