Kenya Has Now Awarded KSh 600 Billion in Housing Contracts to Domestic Firms

President William Ruto has announced that the government has signed contracts worth approximately KSh 600 billion under the national affordable housing programme. Addressing the scale of the infrastructure rollout, the President noted that the vast majority of these contracts have been awarded to Kenyan construction firms.

According to the President, the procurement process has intentionally prioritized domestic capacity. Out of the hundreds of companies currently engaged in the construction of housing units across the country, only one foreign contractor has been brought on board. This move aligns with the administration's policy of utilizing locally raised resources rather than relying on external debt from international financial institutions.

The affordable housing programme is currently active in all 47 counties. Government data indicates that over 240,000 units are presently under construction. To support the technical requirements of these sites, the state has engaged 800 local companies and more than 300 consulting firms. These consultants, including architects and quantity surveyors, have reportedly reduced their professional fees to 2 percent to support the project's viability.

The scale of the investment is significant for the local construction sector. In Nairobi alone, the government has committed KSh 220 billion toward the development of 169,000 housing units and 16 modern markets. The broader national goal remains the delivery of 200,000 units annually to address a housing deficit estimated at two million units.

Funding for these projects is primarily sourced through the Affordable Housing Fund, which is supported by a mandatory 1.5 percent housing levy on gross salaries. President Ruto emphasized that by using internal revenue, the government is maintaining control over the project's destiny while stimulating the local economy through the demand for building materials such as cement, steel, and timber.

Beyond the brick-and-mortar aspect, the programme has integrated a massive internship component. Recently, 5,500 graduate interns from engineering and construction backgrounds were attached to various consulting firms involved in the projects. This initiative is designed to build a pipeline of skilled professionals who can manage future large-scale infrastructure projects.

Specific projects, such as the Lumumba Estate in Kisumu and the Bahati Estate in Nairobi, are already in various stages of execution. In Kisumu, the Lumumba project is expected to provide over 2,300 units by late February 2026. Meanwhile, in Nairobi, the county government has recently retendered for the construction of 6,000 units in Bahati Phase I through joint venture partnerships.

The involvement of the Jua Kali sector has also been a central theme of the rollout. Local artisans are being contracted to manufacture doors, windows, and hinges, ensuring that the KSh 600 billion investment trickles down to small-scale manufacturers and hardware merchants.