President William Ruto on Madaraka Day announced a new loan facility that will allow contributors to the Housing Levy to access home loans of up to KSh 5 million.
Speaking at the 62nd Madaraka Day celebrations in Homa Bay, Ruto hailed the housing levy as a patriotic sacrifice, now transforming into a historic opportunity:
“If you didn’t believe in bottom-up, now you do. If you thought it was a fantasy, you are now part of making history.”
The proposed loan scheme, to be anchored in legislation before Parliament, will give low- and middle-income earners a lifeline to homeownership.
It targets Kenyans earning between KSh 15,000 and KSh 149,999 monthly — a segment largely shut out of the mortgage market due to high commercial rates averaging 13.5%.
The loans will complement existing financing models under the AHP, including the Tenant Purchase Scheme (TPS) with 25-year tenures at 3–7% interest and affordable mortgages through Kenya Mortgage Refinance Company (KMRC) at 9.5%.
Contributors to the 1.5% Housing Levy — matched by employers — will now not only fund housing development but also qualify for access to units priced 49% below market rates.
These include KSh 600,000 social housing and KSh 5.76 million three-bedroom apartments.
The government plans to construct 250,000 homes annually, addressing a two-million-unit housing deficit, and creating over 350,000 jobs.
