The National Assembly has approved new regulations enabling Kenyans to access up to Sh4 million loans from the Affordable Housing Fund to build homes in rural areas, a major landmark for the implementation of the Affordable Housing Act, 2024.
The action follows the vetting of the draft Affordable Housing Regulations, 2025, tabled by the Ministry of Lands, Public Works, Housing and Urban Development by the Committee on Delegated Legislation at the National Assembly.
“Having considered the Affordable Housing Regulations, 2025 (Legal Notice No. 114), the committee recommends that the House approve the regulations,” said Samuel Chepkonga, chair of the committee, in a report.
Under House rules, once the committee tables its report approving the draft regulations, the Clerk of the National Assembly must notify the regulation-making authority in writing so they can proceed to publish the regulations in the Kenya Gazette.
Eligibility and Application Process
Applicants seeking loans from the Affordable Housing Board must meet several strict requirements.
“A person is eligible to apply for a loan for the development of a rural affordable housing unit if that person has made voluntary savings with the Fund, has not been allocated an affordable housing unit, and has met the eligibility criteria specified in Regulation 3,” the regulations state.
“The loan amount credited to a successful applicant shall not exceed four million shillings.”
Eligible applicants can submit an electronic application to the Board but must provide supporting documents, including:
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Development permission from the relevant County Executive Member for Lands
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A land valuation report prepared by a registered valuer
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A priced bill of quantities from a registered quantity surveyor
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A copy of the title deed confirming land ownership
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An official land search
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A declaration that the loan will be used exclusively for constructing a rural affordable housing unit
“When determining an application, the Board may consider whether the applicant has an operational voluntary savings account with the Fund, and whether the applicant has the ability to repay the amount applied for,” the regulations add.
If the Board approves an application, it will enter into a formal agreement with the applicant, credit the loan amount to the applicant’s account after registering a charge in favor of the Board, and notify the applicant to secure life insurance coverage for the loan.
