National Assembly slashes deposits, expands rural options in sweeping changes to affordable housing regulations

Kenyans hoping to own affordable homes have received a boost after the National Assembly approved major reforms to the Affordable Housing Regulations.

On Thursday, August 14, MPs passed the 2025 regulations, which amend the 2024 framework, with the aim of increasing access to government-funded housing and addressing urban housing shortages.

One of the key changes is the reduction of the mandatory deposit from 10 per cent to 5 per cent, a move expected to make homeownership more attainable for low-income earners.

The new rules also set clear qualification criteria, ensuring fairness in allocation. They introduce a rural housing provision, allowing Kenyans to access funds for building homes in their villages.

Under the reforms, applicants will follow a defined loan application process and save through the Boma Yangu platform. Those who fail to qualify can now appeal, withdraw deposits, and reapply for a different unit.

Majority Leader Kimani Ichung’wah urged Kenyans to take advantage of the changes, assuring them of transparency.

“As a Member of Parliament, you cannot qualify for affordable or social housing, but you can qualify for market-rate housing, which costs much more,” Ichung’wah explained. “When you apply for a house, you will be able to indicate whether you are applying for social housing, affordable housing, or market-value housing.”

The reforms mark a significant step toward the government’s goal of making decent housing accessible to all income levels, while opening up rural development opportunities.