MPs initiate move to review loan recovery timelines under Affordable Housing
By Emmanuel Rono, July 28, 2026The National Assembly Lands Committee has begun reviewing proposed changes to the Land Act that seek to shorten the period lenders take to recover loans and sell properties under Kenya’s Affordable Housing Programme.
The amendments, contained in Clauses 14 and 15 of the Business Laws (Amendment) Bill, Senate Bill No. 51 of 2024, propose reducing the timelines for loan enforcement on affordable housing properties in a move aimed at improving access to housing finance and attracting more investment.
According to a statement by the Parliament of Kenya on Tuesday July 28, 2026, the Bill, which was passed by the Senate without amendments, is now before the National Assembly for consideration.
Chairperson of the Lands Committee, Joash Nyamoko, said lawmakers will assess whether the proposed changes strike a balance between promoting investment in affordable housing and protecting borrowers from unfair loss of property.
“Our duty is to ensure that any amendments to the Land Act promote investment while safeguarding the constitutional rights of Kenyans. We must interrogate whether the proposed timelines are fair, practical and in the public interest,” Nyamoko said.
Inside the proposed amendments
Under the proposed amendments, the period before a lender can begin enforcing a loan secured by an affordable housing property would be reduced from 90 days to 45 days.
The notice period before a lender exercises the power of sale would also be shortened from 40 days to 20 days.
The changes would only apply to properties developed or acquired under the affordable housing category, while existing timelines for other property classes would remain unchanged.
Proponents of the amendments argue that faster loan recovery processes would reduce risks faced by financial institutions, boost investor confidence and encourage banks to offer more affordable housing mortgages.
They maintain that the reforms would support the government’s affordable housing agenda by making it easier for developers and lenders to participate in the sector.
However, some lawmakers raised concerns that shortening the timelines could leave vulnerable homeowners exposed, especially those facing temporary financial difficulties.
MP Joseph Gitari questioned whether borrowers would have enough time to regularise their loans before facing foreclosure.
“Will reducing these statutory timelines provide sufficient protection to vulnerable borrowers who may experience temporary financial hardship?” Gitari asked.
Risks inside the proposed changes
Mp Thaddeus Nzambia also raised concerns that the proposed changes could discourage potential homeowners if they view affordable housing mortgages as carrying increased risks of losing their homes.
Nyamoko assured members that the committee would consult widely before making its recommendations, including seeking views from lenders, housing developers, legal experts and consumer representatives.
“We intend to hear from all affected parties before presenting our report,” he said.
The committee is expected to submit its findings in line with Standing Order 127 before the Departmental Committee on Trade, Industry and Cooperatives prepares the final report for tabling in Parliament by August 13, 2026.
However, lawmakers noted that the timelines for consideration are tight and indicated they may seek additional time to complete public participation and stakeholder consultations.