Kenyans could soon benefit from affordable home loans of up to Ksh5 million under a new proposal announced by President William Ruto during the 62nd Madaraka Day celebrations in Homa Bay. The plan, which is part of the government’s push to make homeownership more accessible, will be tabled in Parliament for approval.
The proposed facility will offer loans at single-digit interest rates and apply to any housing unit on the market. President Ruto described the initiative as a practical step in empowering Kenyans through homeownership.
“We shall be proposing to parliament a reform to the law that will allow any contributor to access an affordable home loan of up to Ksh.5 million at a single-digit interest rate,” Ruto said.
He explained that the loan plan would also allow contributors to offset existing mortgages, easing the financial strain for many households. By offering more flexibility in the housing journey, the government hopes to make home financing more manageable for the average Kenyan.
“These reforms will ensure every shilling contributed to the housing levy works for the contributor, whether through access to affordable housing, home loans or mortgage relief,” he added.
Affordable Housing Milestones
This announcement builds on recent milestones achieved under the Affordable Housing Programme. During his visit to the Nyanza region, President Ruto commissioned affordable housing projects in Kisumu and Homa Bay. The tour followed a similar event in Nairobi’s Mukuru kwa Njenga.
In Homa Bay County, the President handed over 110 newly completed units to first-time homeowners, marking a significant moment for beneficiaries and a milestone for the programme. Since its inception in September 2022, the initiative has delivered over 11,000 completed units out of the more than 150,000 currently under construction.
Upcoming handovers are scheduled for Nakuru, Kuria West, Nandi, Kakamega, Vihiga, and Nanyuki, as the government accelerates its rollout of affordable homes across the country.
President Ruto tied the initiative to his Bottom-Up Economic Transformation Agenda, which he said is designed to uplift ordinary Kenyans.
“If you didn’t understand what we meant by ‘bottom-up’, now you do. If you didn’t believe, now you believe,” he said.
“And if you thought it was a fantasy, you are now witnessing and making history.”
