The National Assembly has approved new regulations allowing Kenyans to access loans of up to Sh4 million from the Affordable Housing Fund to construct rural housing units. The move aims to operationalize the Affordable Housing Act, 2024.
The approval follows the clearance of the draft Affordable Housing Regulations, 2025, by the National Assembly’s Committee on Delegated Legislation. The regulations were developed by the Ministry of Lands, Public Works, Housing, and Urban Development under Cabinet Secretary Alice Wahome. “Having considered the Affordable Housing Regulations, 2025 (Legal Notice No. 114), the committee recommends that the House approve the regulations,” said Committee Chair Samuel Chepkonga.
Once approved, the Clerk of the National Assembly must notify the regulation-making authority to publish the regulations in the Kenya Gazette.
Applicants seeking loans must meet stringent conditions. Eligible individuals must have made voluntary savings with the Fund, not have been allocated an affordable housing unit, and satisfy all criteria in Regulation 3. Successful applicants can borrow up to Sh4 million.
Applications are submitted electronically and must include development permission from the County Executive Member for Lands, a land valuation report from a registered valuer, a priced bill of quantities from a registered quantity surveyor, a copy of the title deed, an official land search, and a declaration that the loan will be used solely for developing a rural affordable housing unit.
The Board may consider whether the applicant has an operational voluntary savings account with the Fund and their repayment capacity. Approved loans are credited to the applicant’s account after registering a charge in favor of the Board, and the applicant must secure life insurance for the borrowed amount.
The Affordable Housing Act, 2024, introduced a 1.5% levy on gross salaries and incomes of persons not subject to the employee levy, with employers required to deduct and remit an equivalent contribution. The regulations clarify eligibility, applications, exemptions, allocation procedures, interest or administrative fees, and institutional housing agreements.
Cabinet Secretary Wahome said the regulations were crafted to ensure progressive realization of adequate and affordable housing. “The Act requires the Cabinet Secretary to develop and submit to Parliament the proposed Affordable Housing Regulations, 2025, within 30 days of the Act’s commencement,” she stated.
