In a major policy shift aimed at accelerating access to homeownership, President William Ruto has confirmed a reduction in the housing deposit required under the Affordable Housing Programme, from 10 per cent to 5 per cent.
The announcement, made through a Cabinet dispatch on Tuesday, June 24, marks a significant step in the implementation of Ruto’s Bottom-Up Economic Transformation Agenda (BETA), which places affordable housing at its core.
The revised regulations are part of the newly adopted Affordable Housing Regulations, 2024, which seek to improve equity and expand inclusivity in housing allocation.
According to the Cabinet statement, the reduced deposit aims to “ease the financial burden on ordinary Kenyans” and “enable more families to move from renting to owning dignified, decent housing.”
Housing Principal Secretary Charles Hinga had hinted at the change during a meeting with the National Assembly Committee on Housing, Urban Development, and Public Works on June 21. He stressed the government’s intention to make homeownership a realistic goal for more Kenyans, especially low- and middle-income earners.
The momentum for reform was further reinforced by earlier engagements between President Ruto and COTU Secretary General Francis Atwoli, where issues of equity and proper utilization of housing levy funds were discussed.
In line with the reforms, a special committee will be constituted under the Affordable Housing Board, with representation from both national and county governments. The committee’s mandate will include overseeing the refund and redirection of funds previously used for non-housing projects, such as markets, back into the housing fund.
Additionally, President Ruto reaffirmed that salaried contributors to the Housing Levy Fund will receive priority in housing allocations, though those falling under the social housing category will also remain eligible.
With the reduced deposit, the government hopes to increase uptake of the programme and make homeownership an achievable dream for many Kenyans.
