State moves to calm investors in affordable housing scheme

The government has moved to reassure Kenyans that homes bought under the Affordable Housing Programme are safe and cannot be taken away from them.

This follows warnings from politicians, which have triggered public concern over the future of the flagship housing scheme.

In a statement issued on Thursday, the State Department for Housing and Urban Development dismissed claims that buyers risk losing their investments if a new government comes into power. It said such remarks are misleading and contrary to the Constitution.

“The right to own property is among the most carefully protected guarantees in our Constitution. Under Article 40, every person has the right to acquire and own property, and no one may be deprived of property except in strict accordance with the law and upon prompt payment of full and just compensation,” the Ministry said.

It noted that once a home is lawfully purchased, the ownership cannot be withdrawn through political change. “A purchased home and the financing of the programme are two different things… No administration, present or future, can lawfully extinguish that ownership by pronouncement,” the statement read.

The clarification comes amid rising political debate over the Affordable Housing Programme, which has become a key pillar of President William Ruto’s administration but also a growing point of political contestation ahead of the 2027 elections.

Former Deputy President Rigathi Gachagua has been among the most vocal critics of the programme, warning Kenyans against investing in it. He has repeatedly claimed that some housing projects are built on disputed land and suggested that a future opposition government would reverse parts of the programme.

In earlier remarks, Gachagua said buyers could be exposed to losses if the programme is dismantled after the next election cycle, arguing that “those buying affordable houses will lose their money” if land issues are reviewed under a new administration.

He has also maintained that some of the developments, including projects in parts of Nairobi’s satellite towns, are sitting on land he describes as improperly acquired, raising the possibility of future repossession or relocation of occupants. Wiper party leader Kalonzo Musyoka has also criticised the programme, describing the housing levy as punitive and vowing to abolish it if he forms government.

He has further argued that government-backed housing allocations should be reviewed and restructured under county governments, a position that has added to investor uncertainty.

The Ministry, however, insists that the programme is anchored in law under the Affordable Housing Act, 2024, and that all buyers receive legally recognised sectional titles that confer full ownership rights.

“On completion of purchase, a beneficiary receives a sectional title issued in his or her own name… The sectional title is a registered and indefeasible instrument of ownership,” the statement said.

Beyond political disagreements, the programme is also facing structural and financial pressures. Government officials have acknowledged that the housing scheme requires nearly Sh400 billion annually to meet national targets, with current levy collections falling short of projected needs.

At the same time, reports indicate the government is exploring long-term financing options, including a proposed Sh100 billion loan backed by future housing levy collections, raising questions about sustainability.

Concerns have also been raised over affordability and enforcement, with buyers on long-term repayment plans of up to 30 years warned that defaulting on payments could lead to repossession under strict recovery rules. The programme has also attracted political scrutiny over transparency and fairness, with critics alleging that access to housing units is being influenced by political alignment, a claim the government has not formally addressed in detail.

However, parliamentary oversight has defended the initiative, with the National Assembly Committee on Housing stating that about 80 per cent of beneficiaries are ordinary Kenyans and not elite investors.

Despite these assurances, uncertainty around funding, political rhetoric and competing narratives has created unease among potential buyers, with some Kenyans questioning whether long-term investments in the programme are safe.

The housing ministry says such fears are unfounded and insists that property rights remain protected regardless of political transitions. “A nation is measured by how it protects its most vulnerable… Citizens taking their first and hardest steps toward a home of their own are precisely those to whom the State owes its highest duty of protection,” the statement said.