President William Ruto has defended the government’s use of a revolving fund to finance affordable housing, saying the model will continue until Kenya’s housing shortage is addressed.
Speaking during the Broad-Based Government Principal Group meeting on Monday, August 10, Ruto explained that the government is developing and selling affordable homes on public land, with proceeds from completed units being reinvested into new housing projects.
Ruto said the model was necessary because the land and resources being used for the Affordable Housing Programme ultimately belong to Kenyans.
“Some people are asking why we are selling houses built on government land to citizens using resources raised by the people of Kenya,” Ruto said.
He explained that the housing levy and public land are national resources and that proceeds from the sale of completed houses are channelled back into the programme.
The President said buyers are therefore required to pay for the houses because the money generated is used to create a revolving fund for financing additional construction.
“So when you buy, you have to pay because we need the money to do the revolving fund until every other citizen has gotten a house, then that is when we will stop,” Ruto stated.
According to the President, the arrangement will remain in place for as long as Kenya continues to experience a significant housing deficit.
He estimated the country’s current housing shortage at nearly 2.5 million units, adding that the deficit continues to grow.
“But until and unless each and every one of us has got a house, we will continue the revolving fund because in any case, we have a shortage of close to two and a half million houses and that shortage is growing,” he said.
The housing levy has faced criticism from sections of the public, particularly over the additional deductions from employees’ salaries and questions about how contributors will benefit from the Affordable Housing Programme.
Some critics have also questioned whether workers who already own homes or may not qualify for the programme’s units will directly benefit from the mandatory contribution.
Ruto also defended the government’s decision to use public land for affordable housing developments.
He said both national and county governments had been working together to make public land available for the projects.
According to Ruto, public land is held in trust for Kenyans and should be put to productive use where it can deliver benefits to the public, including through the construction of affordable homes.
“Whatever land, be it by county or national, is held in trust by those governments for the people. So if the people benefit from that piece of land, what is the problem?” he said.
The President further maintained that existing laws provide mechanisms for public land to be allocated for development, including housing, as long as the required legal procedures are followed.
Ruto’s remarks come amid continued debate over the Affordable Housing Programme, particularly its financing model, the mandatory housing levy and the use of public resources to develop homes for eligible Kenyans.