Kenya’s affordable housing program has received a significant lift, with the World Bank announcing plans to mobilize up to Ksh174 billion to expand access to cheaper home financing and accelerate the delivery of low-cost units across the country.
According to documents released by the global lender, Kenya will receive a concessional loan of Ksh48.4 billion, while the World Bank will also support the government in securing a sovereign sustainability-linked loan worth Ksh116.3 billion from commercial financiers. The Organization of Petroleum Exporting Countries (OPEC) Fund is expected to inject an additional Ksh9.6 billion into the program.
Under the plan, the Kenya Mortgage Refinance Company (KMRC) will refinance and disburse affordable mortgages, helping more Kenyans especially those earning below Ksh50,000 per month access home loans that have long been out of reach.
The World Bank says the financing model is designed to diversify Kenya’s borrowing options and lower financing costs, with approval expected by May 2026. It notes that the country faces a housing deficit of more than two million units, with demand rising by over 250,000 households each year. Currently, formal housing supply averages below 50,000 units annually, pushing most urban residents into informal settlements.
The lender emphasised that affordability challenges remain the biggest barrier to home ownership, with the majority of formally employed Kenyans unable to qualify for traditional mortgages. The planned investment is therefore intended to complement President William Ruto’s ongoing efforts to scale up affordable housing by attracting international investors and development finance partners.
Other development bodies including the International Finance Corporation (IFC) have also backed the initiative, offering financing to private developers and supporting green housing projects. Additional efforts are underway to expand credit guarantee schemes that make mortgages more accessible for informal sector workers.
President Ruto has also sought investment from Gulf nations, including Saudi Arabia, to channel fresh capital into the housing sector as the government works to meet rising demand for affordable units.
