NAIROBI, Kenya — The Principal Secretary for Housing and Urban Development, Charles Hinga, has asked Parliament to approve an additional Sh150 billion to bridge a major funding gap in the government’s affordable housing programme.
Speaking before the National Assembly Committee on Housing, Urban Planning and Public Works on May 13, Hinga said current funding levels are insufficient to sustain the target of delivering thousands of housing units annually countrywide.
“We asked you to go and fight for us, the Sh25 billion. Now we have come back to you, I don’t know, six times the Sh25 billion,” Hinga stated. “We are asking you to go and prosecute the case that we need Sh150 billion.”
Funding Shortfall
Hinga explained that the current Sh100 billion collected annually towards the project is still inadequate, especially as demand for affordable housing rises in urban and peri-urban areas.
He warned lawmakers that the 2026/27 financial year estimates do not meet actual programme requirements, noting the housing agenda needs about Sh228 billion to remain on track.
The National Treasury allocated Sh50.6 billion to the Affordable Housing Programme in the 2026-2027 budget, drawn from a total Sh135.8 billion set aside for the State Department for Housing and Urban Development.
Construction Target at Risk
The programme is targeting the construction of at least 2,000 affordable housing units annually. Hinga believes this target faces major setbacks due to financial lapses.
Alternative Funding Models
Hinga pointed to alternative funding models, including housing sales and securitised receivables, which could generate up to Sh100 billion to support long-term sustainability.
He revealed he has given Affordable Housing Board CEO Sheila Waweru a target of Sh50 billion from these models.
“We have given the CEO the target of 50 billion now because, Chair, the sales have a long runway and then the securitisation receivable, which is an income of another 100 billion,” Hinga said.
Parliament’s Role
Hinga stressed that Parliament’s support is crucial in unlocking additional funds, warning that without the extra allocation, implementation timelines could slow significantly.
The committee is expected to deliberate on the proposal amid mounting pressure on the government to balance housing ambitions with available fiscal space.
