The government is struggling with inadequate funding for the affordable housing programme, a key component of President William Ruto’s flagship projects.
This is despite billions of shillings being collected monthly from Kenyan workers to support the initiative.
Controller of Budget (CoB) Margaret Nyakang’o has revealed that the government is far from meeting its annual target of building 250,000 houses to address housing demand.
According to Nyakang’o, between July and September 2024, the State Department for Housing spent Sh7.9 billion on the programme, only half of the expected Sh15.8 billion for the quarter.
The expenditure represents just 25 per cent of the annual affordable housing budget of Sh63.22 billion.
The CoB has identified financial shortfalls as a critical hurdle, stating that most projects planned by the State Department for Housing and Urban Development were either behind schedule or had surpassed their target completion dates, except for those under the Kenya Urban Support Programme II.
“Except for the project under Kenya Urban Support Programme II, all the projects planned to be implemented by the State Department for Housing and Urban Development were either past the target completion date or lagging the implementation schedule,” Nyakang’o said.
Further complicating the situation, Nyakang’o noted that the Kenya Informal Settlement Redevelopment Project (Kisrip) failed to attract funding, contrary to the government’s plans to close the housing gap by delivering 250,000 houses annually.
The Kisrip project, which began in July 2024, is intended to receive Sh936 million in government funding over three years, with completion expected by June 2027.
However, the CoB’s report reveals that only Sh25 million was spent on the project during the three months leading up to the end of September 2024, a third of the expected expenditure for the period.
Add Comment