How affordable housing is reshaping Kisumu property market

Where old iron sheet houses once stood in crowded rows, new apartments block now rise against Kisumu’s bright blue sky.

Fresh paint, paved roads, and streetlights are slowly changing the look of the lakeside town as an affordable housing program begins to transform everyday life for many families.

For decades, the city’s growth has outpaced its housing. Informal settlements have expanded, while ageing estates have sagged under the weight of time living young professionals are priced out of decent accommodation.

 Where rusted iron-sheet houses once leaned on each other in crowded rows, sleek new apartment blocks now stretch confidently toward Kisumu’s bright blue sky. The clang of mabati roofs when wind blows has begun to fade, replaced by the hum of fresh beginnings.

Newly painted walls glow in the sun, paved roads cut clean paths through once-dusty neighbourhoods, and streetlights usher in the nights, evidence of small beacons of a town rewriting its story.

For years, the rapid growth of the lakeside City outpaced its housing, making informal settlements swell and ageing estates bow under decades of wear.

Young professionals and working families found themselves priced out of safe, decent homes. But as the affordable housing programme (AHP) gathers momentum, it is not just the skyline that is changing; it is life itself.

Housing shortage

 The national government has been actively involved in the construction of affordable housing in Kisumu, aiming at addressing the housing shortage in the county. The government plans to build 14,000 affordable housing units in Kisumu at a cost of Sh34 billion.

Already, the towering buildings have started taking shape at the heart of Kisumu as other partners, too, in collaboration with Governor Anyang’ Nyong’o’s administration, complete others.

At Lumumba, which is one of the largest ongoing housing developments in Kisumu’s urban core, the aim is to deliver more than 2000 housing units, with the project incorporating several 17-storey blocks.

Joseph Ochieng, a resident of Kisumu, says that the affordable housing programme has shaken Western Kenya’s real estate market. He argues that even though the houses are yet to be completed, the project has altered investor expectations. 

“Land pricing has shifted in surrounding neighbourhoods, and private developers have begun reassessing their own mid-market projects. Also, many middle- and lower-income earners who might have stretched themselves to buy plots or build homes are now waiting to see how the affordable units play out,” explains Ochieng.

“That pause alone affects cash flow in the informal construction sector, land sales and small-scale developments that typically drive Western Kenya’s property economy. Even landlords are watching closely, anticipating future competition if large numbers of subsidised units enter the rental market. Even me, I will vacate my current house to take units next to town.”

Investor confidence

Another resident, Kepher Mikara, says that they believe the cost of housing will reduce in the coming years.

He notes that the affordable housing project has also stimulated economic activity and restored investor confidence.

“Traditionally, real estate growth in Kenya was concentrated around Nairobi in the past. Look at what is happening in Western Kenya today, which often experiences slower growth and limited affordable housing options.

The AHP has shifted this dynamic by introducing large-scale, government-backed housing projects in counties such as Kisumu, Kakamega, and Vihiga, Migori counties,” he says.

He adds that even village towns like Awendo and Rongo town in the sugar belt, now have such structures coming up.

Odhiambo notes that this good idea has already started witnessing demographic challenges due to the surge in rural-urban migration in search of job opportunities. According to Mikara, the affordable housing project has opened the property market to low- and middle-income earners who were previously locked out of home ownership.

But real estate expert Nishma Karia of Lake Estate Agency argues that there is a need for high energy and clear living spaces even as the government pushes for an affordable housing program.

She agrees that the programme has impacted the real estate in the western region by ensuring that more people have shelter, but the designs, which put a huge number of people on the same block, totally contradict the purpose. 

“Will we be able to cater and sustain basic supplies such as water, sewer lines and traffic, or will it become chaos?

What is the projected future of this programme? Look at the population living there, and what happens in case of a hazard. They are taking human beings to a concrete block and giving them the idea of affordable housing,” she argues.

She notes that it is a good idea that should have been well thought out by the government, focusing on providing housing where people can have sustainable incomes and homes in the right environments. “I think they should have made fewer apartments and provided more space, because the environment is everything. Give value for money, do not undercut on matters of construction.

If this programme is applied properly, where there is more space and people do not feel overstrained financially, then it is a good one,” she argues. She says that because of the increase in supply of housing units, there is more supply than demand, and so at the end of the day, the value of the property will not appreciate.

On whether there is increased interest from diaspora buyers in these projects, she argues that they are still looking to purchase in places like Milimani, Riat or Ciala with nice subdivision scheme plans, especially when they realise the housing projects are too cluster phobic.

“They are looking for nicely spaced places where they can build their homes and have their gardens, connect to nature, and be away from the CBD. They prefer to buy there rather than having something concrete, and you are not connected,” she notes.