Enabling low cost-mortgages of Kshs 10,000 and below to grow number of mortgages from 30,000 to Kshs 1M

The Kenya Kwanza government promised to turn the housing challenge into an economic opportunity by growing the number of mortgages from 30,000 to 1,000,000 by enabling low-cost mortgages of Sh10,000 and below possible.

While the Affordable Housing Levy has successfully collected substantial funds, a large portion remains unutilized due to absorption challenges. Initiatives like the Kenya Mortgage Refinance Company (KMRC) and the Kenya Mortgage Guarantee Trust (KMGT), supported by significant funding and policy adjustments, aim to improve mortgage affordability and reach the informal sector. Progress is also evident in the completion of approximately 140,000 Affordable Housing Program (AHP) units and the creation of over 200,000 youth jobs.
However, high upfront costs, the high cost of land and building materials, project delays, community resistance, and infrastructure deficits continue to impede the widespread realization of low-cost housing and the ambitious goal of one million mortgages.

ABOUT MZALENDO

Mzalendo is a Kenyan non-partisan Parliamentary monitoring organization whose mission is to “promote the realization of open, inclusive, and accountable Parliaments across Kenya and Africa”.

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