By Sysvoline
President William Ruto on Saturday announced a major housing sector reform that aims to make homeownership more accessible to ordinary Kenyans. The announcement was made during the 62nd Madaraka Day celebrations held at the Raila Odinga Stadium in Homa Bay County.
As part of his government’s ongoing Affordable Housing Programme, the President proposed new legislation that would allow every contributor to the housing fund to access mortgage loans of up to KSh 5 million, at single-digit interest rates.
“I am proposing legal changes that will empower every contributor to secure an affordable loan of up to KSh 5 million at a single-digit interest,” said President Ruto.
Flexible Homeownership for All
Under the new proposal, contributors will be allowed to use their loans to purchase housing units of their choice on the open market, not just units built under government housing schemes.
Ruto said the reform would not only help workers achieve homeownership but would also ease financial strain for those already dealing with high-interest mortgages. The move is also expected to stimulate the real estate sector by increasing demand from first-time buyers.
“This move will open more flexible financial options for Kenyans and help reduce the financial strain on those already burdened by costly mortgages,” he added.
Public Support and Scrutiny
The announcement comes amid ongoing debate and concern over the implementation of the Affordable Housing Fund, which currently deducts a portion of workers' monthly salaries. While the government insists the fund is a vital step toward solving Kenya’s housing deficit, critics have questioned its transparency and oversight.
However, many Kenyans have expressed interest and optimism about the new mortgage proposal, viewing it as a chance to finally own a home under more favorable financial terms.
Parliamentary Debate Ahead
The proposed legal changes are expected to be presented to Parliament in the coming weeks. If approved, the reform could mark a significant shift in housing policy, giving millions of contributors access to affordable mortgages and more choice in the housing market.
President Ruto’s remarks aligned with this year’s Madaraka Day theme: "Harnessing Kenya’s Blue Economy for Sustainable Growth", but also underscored his broader “Bottom-Up” economic model, which aims to empower ordinary citizens through practical, people-centered policies.
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