Parliament approves regulations for Ksh 4Million rural housing loans under Affordable Housing Fund

Kenyans seeking to build homes in rural areas can now access loans of up to Ksh4 million through the Affordable Housing Fund, following the approval of new regulations by the National Assembly. The move is part of efforts to implement the Affordable Housing Act, 2024.

This is after the Committee on Delegated Legislation, chaired by Samuel Chepkonga, endorsed the Affordable Housing Regulations, 2025 which is a legal framework developed by the Ministry of Lands, Public Works, Housing and Urban Development under Cabinet Secretary Alice Wahome

In her memorandum, CS Alice Wahome said the regulations were designed to ensure the progressive realization of affordable housing across the country.

Under the new framework, applicants seeking loans from the Affordable Housing Board must have made voluntary savings with the Fund, must not have been allocated an affordable housing unit before, and must satisfy the eligibility criteria outlined in Regulation 3. The maximum loan amount is Ksh 4 million.

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Applications must be submitted electronically and accompanied by a range of documents, including development permission from the relevant County Executive Member for Lands, a land valuation report from a registered valuer, and a priced bill of quantities from a certified quantity surveyor.

Applicants must also provide a title deed, an official land search, and a signed declaration confirming the loan will be used exclusively for rural housing development.

The Board will assess applications based on the applicant’s savings record and repayment ability. If approved, the Board will enter into a formal agreement, register a charge against the property, and credit the loan amount to the applicant’s account. Borrowers will also be required to take out life insurance cover for the loan.

The newly approved Affordable Housing Regulations, 2025, provide clarity on how the Act will be implemented. They cover eligibility, application procedures, exemptions, allocation and reallocation in case of default, deposit requirements, interest rates or administrative fees, off-take processes, and institutional housing agreements.

By Masaki Enock

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