Treasury sets aside Ksh over 50 billion for affordable housing in 2026/2027 budget

President Ruto launching the Affordable housing in Mukuru
President Ruto launching the Affordable housing in Mukuru. Photo Courtesy

Kenya’s push to put more citizens under decent roofs is receiving a fresh financial shot in the arm, with the National Treasury earmarking Ksh 50.6 billion for the Affordable Housing Programme (AHP) in the 2026/2027 financial year.

The allocation, which forms 37 percent of the total Ksh 135.8 billion set aside for Housing, Urban Developments and Public Works in the upcoming budget, will go toward the construction of affordable housing units across the country.

The Ksh 50.6 billion marks a 22 percent decrease from the Ksh 64.5 billion allocated in the current financial year. The AHP has seen its housing budget grow sharply since inception, from Ksh 35.2 billion in the 2023/2024 financial year as the programme began rolling out nationwide.

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Beyond the flagship housing units allocation, the broader housing budget covers several other interventions. The Kenya Urban Programme (KenUP) will receive Ksh 18.6 billion, while institutional housing has been allocated Ksh 20.2 billion. Social and physical infrastructure will receive Ksh 18.2 billion, and the Kenya Informal Settlement Improvement Project Phase II has been allocated Ksh 2.7 billion.

An additional Ksh 2.36 billion has been set aside for the regulation and development of the construction industry, aimed at enforcing compliance with building codes, promoting sustainable construction, and improving industry oversight. Maintenance of state pool houses will receive Ksh 820.3 million.

The housing programme, a flagship pillar of President William Ruto’s Bottom Up Economic Transformation Agenda (BETA), targets the delivery of 250,000 housing units annually, with an aggregate goal of one million units by 2027.

By Benedict Aoya

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