President William Ruto has announced a reduction in the deposit required for allocation of affordable housing units from 10 per cent to 5 per cent, in a move aimed at expanding access to home ownership for salaried Kenyans.

The announcement was made during Labour Day celebrations held on May 1, 2026, where the Head of State said the decision had already been incorporated into the housing allocation framework and regulations governing the programme.

“It is confirmed that the commitment I made to COTU last year has been delivered. The deposit required for the application of allocation for an affordable housing unit has now come down from 10 per cent to 5 per cent. This applies to every salaried Kenyan, and the reduction has been codified in our allocation framework and in the affordable housing regulation passed in 2025,” President Ruto stated.

Policy shift on affordable housing access

The reduction forms part of the government’s broader Affordable Housing Programme under the Bottom-Up Economic Transformation Agenda (BETA), which targets expansion of housing access across income groups.

According to government policy documents issued in 2025, the adjustment is intended to ease the financial burden on applicants transitioning from rental housing to ownership. The regulations also outline structured allocation processes based on income categories and contributions to the Housing Levy.

The policy follows engagements between the Ministry of Lands, Public Works, Housing and Urban Development and stakeholders, including consultations with the Central Organisation of Trade Unions (COTU) led by Francis Atwoli.

Implementation and institutional arrangements

The Affordable Housing Programme is being implemented through the Affordable Housing Regulations 2024, which set out governance and allocation mechanisms for housing units under development.

Housing Principal Secretary Charles Hinga has previously stated that priority allocation is given to salaried workers contributing to the Housing Levy. A special committee has also been tasked with overseeing the recovery and management of funds previously redirected within the programme.

The government has further directed partnerships with organisations such as Maendeleo Ya Wanawake, allowing the use of Affordable Housing Fund resources for development on designated land, with provisions for repayment upon project completion.

Programme challenges and delivery status

Despite policy progress, official reports indicate financial and operational constraints affecting implementation. Treasury submissions and parliamentary disclosures in 2026 noted reductions in donor funding and staffing shortages within the housing programme.

Audit findings have also highlighted compliance gaps in Housing Levy remittances by several employers, alongside concerns over the pace of unit delivery compared to annual targets.

As of mid-2025, the Affordable Housing Fund had collected tens of billions of shillings, with thousands of housing units completed against a much higher annual target. A significant portion of funds remains invested in government securities pending project execution.

The government maintains that ongoing reforms, including the reduction in deposit requirements, are intended to improve uptake and accelerate the delivery of housing units nationwide.