The Affordable Housing Programme (AHP) is one of the flagship initiatives under Kenya’s Vision 2030 and the government’s Big Four Agenda.
Its core aim is to provide decent and affordable homes to the growing population, particularly targeting low- and middle-income earners who are often priced out of the formal housing market.
Launched in 2017, the programme seeks to address the significant housing deficit in Kenya, which stands at over 2 million units and grows by more than 200,000 units annually.
Most urban dwellers live in informal settlements or substandard housing, often lacking basic services like water, sanitation, and electricity.
The AHP targets the construction of at least 500,000 affordable homes. These units are designed to cost significantly less than those in the open real estate market, with prices ranging from as low as KSh 1 million for a one-bedroom apartment to around KSh 3 million for a three-bedroom house.
To achieve its goals, the programme leverages public-private partnerships (PPPs), government land, and innovative financing mechanisms. Developers are provided with incentives such as tax breaks, reduced levies, and fast-tracked approvals to encourage investment in affordable housing projects. In return, they must commit to selling homes at set affordable rates.
Homebuyers can access these units through tenant purchase schemes, cooperative societies, SACCOs, and the Housing Fund an initiative introduced to help workers save towards home ownership. Contributors to the Housing Fund are eligible for government-supported financing, making home ownership more accessible to Kenyans earning less than KSh 150,000 per month.
Several AHP projects are already underway or completed in areas such as Pangani, Park Road in Nairobi, Mavoko, and Kisumu. These developments typically include integrated infrastructure such as roads, schools, retail centers, and recreational spaces, aiming to foster well-planned and sustainable communities.
Despite its promise, the AHP has faced challenges. These include public skepticism over financing models like the Housing Levy, bureaucratic hurdles, and concerns about the true affordability of the units. Additionally, balancing developer profits with genuine affordability remains a delicate task.
Nevertheless, the AHP remains a transformative step toward realizing the right to housing as enshrined in Kenya’s Constitution. If effectively implemented and scaled, it holds the potential to reshape Kenya’s urban landscape, reduce slum proliferation, and enhance the quality of life for millions of Kenyans.
