By Andrew Kariuki
A Kenyan rights organisation has moved to court seeking the enforcement of a long-standing statutory framework governing government-backed housing loans, arguing that failure to implement the law has denied low-income Kenyans access to affordable housing finance.
In its filings, the group relies on the Specific Loan (Commonwealth Development Corporation) Act (Cap. 440), which authorises the government to borrow funds from the Commonwealth Development Corporation specifically for housing purposes and mandates that the loan be applied exclusively under the Housing Act
The law, which has been in force since 1953, empowers the Cabinet Secretary responsible for finance to raise the loan and requires that both the principal and interest be charged directly to the Consolidated Fund.
It further provides that no other public loan should take priority over the housing loan without prior consent from the lender
According to the petitioners, the statutory scheme was designed to ensure sustained financing for housing development, particularly for low-income households, but has not been operationalised in a manner consistent with its purpose.
They argue that the failure to apply the loan strictly for housing, as required by law, undermines Parliament’s intent and violates principles of accountable public finance.
The law also establishes mechanisms for the issuance, registration, transfer, and repayment of bonds tied to the loan, and obligates the Treasury to appropriate funds annually to meet repayment obligations so long as any portion of the loan remains outstanding
The petitioners are seeking court orders compelling relevant state agencies to comply with the statute and to account for how housing-related loan funds have been applied.
They maintain that enforcement of the Act would expand access to housing finance and restore the legal safeguards Parliament put in place to protect public borrowing for social development.
The matter is pending before the court, which is expected to issue directions on the scope of the case and the responses required from government institutions.
