By Michelle Ndaga
The World Bank has announced a major finance package for Kenya’s affordable housing agenda, pledging a $375 million (approx. KSh 48.4 billion) concessional loan while helping to mobilise an additional $900 million (approx. KSh 116.3 billion) via a sustainability‑linked sovereign loan from commercial lenders.
The combined financing of about $1.35 billion (KSh 174 billion) is designed to boost access to low‑cost mortgages and help close Kenya’s two‑million‑unit housing deficit.
Officials say the loan will also support development of the sector via enhancements in the mortgage‑refinance company, improved affordability and targeted subsidies.
Experts say this could stimulate the construction sector, drive upstream demand for building materials and housing‑finance products, and spur job growth. But risks remain: ensuring funds are channelled efficiently, avoiding cost overruns, and maintaining affordability.
For Kenya, the challenge will be translating this funding into actual homes and mortgage uptake, while managing sovereign debt sustainability. The timing aligns with increasing policy emphasis on housing as a key pillar for economic growth and social inclusion.
As of early 2025, around 140,000 units were constructed, with approximately 200,000 more under construction, in over 20 counties. President Ruto aims to deliver 200,000 units annually to achieve a total of 1 million in five years.
The program has created over 250,000 direct and indirect jobs, with a projection of over 1 million jobs over its lifecycle.
