National Treasury says it is fast-tracking regulations to protect housing levies collected and ensure they are optimally utilised to address the housing gap as well as spur the economy through creating employment.

Cabinet secretary Njuguna Ndung’u said the regulations done in collaboration with the Ministry of Lands and Physical Planning are at an advanced stage of development.

“As a government, both the National Treasury and the Ministry of Lands, we are working on regulations that shall ensure the levies collected from Kenyans are optimally utilised to address the housing gap as well as spur the economy through creating employment to thousands of Kenyans,” he said.

It is estimated that Kenya has a housing deficit of housing deficit of over two million units, with nearly 61 per cent of urban households living in slums.

Ndung’u said in a speech read on his behalf by the Director-General, Budget, Fiscal and Economic Affairs Albert Mwenda during the national affordable housing conference in Mombasa yesterday that the policy priority is that the government is pursuing to solve demand and supply constraints. On demand side, he explained, Kenya Mortgage Refinance Company (KMRC) is working with players in finance sector to ensure there is easy access of loans.

“On the supply side, we want to mobilise resources that will be available or developers in the sector through the national development housing fund 2023,” he stated.

Ndung’u said the government is also banking on the national housing development levy, which was introduced through the Finance Act 2023 to spur economic development and enhance delivery of affordable houses for Kenyans.

“We have guaranteed stable and lower interest rates, lower tenure for the mortgage and we believe that all these reforms will spur the sector in line with the bottom up economic transformation agenda (BETA),” he added.

Johnston Oltetia, KMRC managing director maintained that collaborations with the government and financial institutions can help create favourable financing options for potential homebuyers.