Affordable housing /FILEThe Kenya Kwanza government spent Sh122 billion on
its affordable housing flagship project in 2025-26 but delivered less than half
of its target, a new report has found.
According to the Controller of Budget’s National Government Budget Implementation Review Report for FY2025-26, the affordable housing sub-programme had a revised allocation of Sh124 billion during the year.
Out of this, it spent Sh122.18 billion, representing a 99 per cent absorption rate.
Of this, development expenditure accounted for Sh120.18 billion, while Sh2 billion went to recurrent expenditure.
However,
the high level of spending did not translate into equivalent progress on the
ground.
While the government set an annual target of 52 per cent completion of works on 217,654 housing units, only 24.5 per cent was achieved by June 30. This translates to a shortfall of 27.5 percentage points against the annual target.
So, despite absorbing 99 per cent of the programme’s budget for the financial year, the project achieved only 47 per cent of the physical progress it had targeted.
The report shows that only 1,836 housing units were completed and handed over during the financial year.
Some 1,380 other units were “substantially complete” but awaiting handover.
CoB Margaret Nyakang’o attributed the shortfall to the slower implementation of housing projects, saying several projects remained at different stages of construction and preparation.
Nyakang’o added that 103,251 other units were under construction, while another 65,649 units were at stages ranging from procurement and contract signing to site handover and preliminary works.
The entire project has a total estimated value of Sh1.758 trillion, with implementation scheduled from July 2018 to June 2032.
By June 30, 2026, cumulative expenditure on the project stood at Sh188.36 billion, including Sh120.18 billion spent during the 2025-26 financial year. Yet the reported overall completion rate was only 15 per cent.
The programme also accounted for a substantial share of national government construction spending.
The CoB
says construction and civil works were the second-largest category of
development expenditure, with spending of Sh137.66 billion.
“The State Department for Housing and Urban Development recorded the highest expenditure in this category, at Sh113.64 billion, attributed to the government's affordable housing project.
“Construction and civil works recorded Sh117.29 billion, the second-highest spending category, representing 14 per cent, with the State Department for Housing and Urban Development recording the highest at Sh113.64 billion. Another budget item with significant expenses was construction of residential Buildings at Sh24.06 billion (three per cent),” the report adds.
The State Department for Housing received a revised overall allocation of Sh147.91 billion, up sharply from Sh82.44 billion in FY2024-25. Of this, Sh124 billion was allocated for the Affordable Housing sub-programme.
However, while the affordable housing programme missed its annual construction target, the social housing programme performed better.
The government reported that 4,536 social housing units had been completed and handed over, against a target of 80,909 units.
It also prepared 25 Local Physical Development and Land Use Plans against a target of 20 and refurbished 626 government housing units against a target of 500.
