Nairobi, Kenya’s fast-growing capital, is facing a critical housing shortage driven by population growth, urban migration, and a widening income gap.
In response, the government launched the Affordable Housing Programme (AHP) a bold initiative that places Nairobi at the center of Kenya’s housing reforms. The goal is to deliver decent, secure, and affordable homes for the city’s growing population.
Nairobi’s Affordable Housing Deficit
Kenya is estimated to have a national housing deficit of over 2 million units, with Nairobi bearing a significant portion of that burden.
Many residents especially low and middle-income earners struggle to access formal housing due to high prices, limited financing, and a shrinking supply of urban land.
To address this, the AHP is targeting key Nairobi neighborhoods, such as Ngara and Pangani, to roll out affordable housing projects. These locations were selected for their proximity to major transport corridors and existing utilities, making them ideal for integrated housing development.
The government’s goal is to construct 200,000 affordable housing units annually, many of which are already underway in Nairobi.
Learn more about the Nairobi projects on the State Department for Housing website.
Upgrading Informal Settlements with Dignity
Beyond new constructions, the programme also focuses on improving informal settlements. Nairobi is home to sprawling slums where many families live without basic services.
Through a mix of public-private partnerships, the government is working to replace these settlements with modern, planned housing.
The new developments will offer affordable rent or ownership options through Tenant Purchase Schemes and low-interest mortgage plans, ensuring long-term sustainability. This approach doesn’t just build houses it upgrades lives.
To read more about Kenya’s housing policy and slum redevelopment, visit UN-Habitat’s Urban Agenda for Kenya.
What Makes These Homes “Affordable”?
The cost of affordable housing in Kenya varies based on unit size and location. In Nairobi, a one-bedroom unit under the AHP can cost around Ksh 960,000, while a two-bedroom unit may go for about Ksh 1.3 million.
With flexible financing options, some households may pay as little as Ksh 5,000–Ksh 6,000 per month, making homeownership more achievable than ever before.
More details on current prices and eligibility are available through the Boma Yangu portal, which also provides a platform for registration and applications.
Who Qualifies for Affordable Housing in Nairobi?
To be eligible for the affordable housing units, applicants must:
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Be Kenyan citizens over the age of 18
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Have a valid national ID and KRA PIN
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Have a consistent source of income (including self-employment)
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Be registered on the Boma Yangu platform
Priority is often given to first-time homeowners and individuals earning below Ksh 150,000 per month.
A Vision for a More Inclusive City
With thousands of units expected to be delivered by2025, Nairobi is poised to become a model for other counties seeking to address housing inequality.
The Big 4 Agenda, introduced under President Uhuru Kenyatta and continued by President William Ruto, has kept affordable housing as one of its top priorities framing it not just as a social need, but as a driver of economic growth and job creation.
Yet, challenges remain such as access to land, infrastructure bottlenecks, and community buy-in. Still, Nairobi’s transformation shows promise, signaling a future where housing is not a privilege, but a right.
For the latest affordable housing news in Kenya, check out Nation Africa’s housing updates.
