More than 1,700 affordable housing units that were on the verge of stalling will now proceed after Members of Parliament approved KSh25 billion to unlock funds previously tied up in Treasury Bills.
The allocation, passed under Supplementary Estimates I for the 2025/26 financial year, is expected to ensure contractors are paid and ongoing projects remain on track.
The National Assembly endorsed the report of the Budget and Appropriations Committee (BAC), which reorganised the Housing Development and Human Settlement vote under the State Department for Housing.
“Increase Sh25 billion (Development) for affordable housing (Appropriations in Aid),” BAC chairperson Samuel Atandi, the Alego Usonga MP, noted in the committee’s report.
ALSO READ:
Machogu urges youth to join SACCOs for financial security and national growth
The move followed warnings from Housing Principal Secretary Charles Hinga, who had cautioned lawmakers that more than 1,700 housing units risked grinding to a halt after the National Treasury failed to factor in funds invested by the Affordable Housing Board in Treasury Bills.
Appearing before the Housing Committee, chaired by Buuri MP Mugambi Rindikiri on March 19, 2026, Hinga said the Treasury had declined to include the money in the Supplementary Budget, leaving the department unable to pay contractors or utilise the KSh6 billion generated monthly from the Housing Levy for April, May, and June.
By January this year, the Affordable Housing Board had already spent 79.5 per cent of its allocated budget, even as it continued to process payment certificates for ongoing housing and related infrastructure projects nationwide.
ALSO READ:
Report: Mobile money loans surge in Kenya amidst growing financial inclusion
Hinga stressed that without an enhanced budgetary provision of KSh25 billion, projects across the country would stall.
The approval by MPs now clears the way for the release of the KSh25 billion, offering relief to contractors and safeguarding the continuity of housing projects under the government’s affordable housing programme.
By Masaki Enock
Get more stories from our website:Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook:Sacco Review Newspaperfor timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
