Kenya’s Affordable Housing: Progress and Challenges in 2025
The Kenyan government has set an ambitious goal to construct 200,000 affordable housing units annually, aiming to reach 1 million homes over five years. As of April 2025, approximately 140,000 units have been completed, with a recent release of 5,000 units attracting over 500,000 interested applicants through the Boma Yangu platform.
Despite these efforts, the program faces several challenges. A proposal in the Finance Bill 2025 seeks to remove VAT exemptions on building materials, potentially increasing construction costs and slowing down housing delivery .
Additionally, legal disputes have delayed occupancy timelines, shifting the initial move-in target from December 2024 to April 2025.
Public-private partnerships are central to the housing initiative, yet some projects have encountered resistance from local communities over concerns like displacement and inadequate compensation.
Moreover, infrastructure deficits in certain areas have hindered the appeal and feasibility of new developments.
To bridge the gap between demand and supply, the government is encouraging private sector participation by offering tax incentives and simplifying regulatory processes . Innovations such as low-cost construction technologies and rent-to-own financing models are also being explored to enhance affordability.
While significant strides have been made, achieving the affordable housing targets will require sustained collaboration between the government, private developers, and communities. Addressing financial, legal, and infrastructural challenges is essential to ensure that more Kenyans can access decent and affordable homes in the near future.
