President Ruto slashes affordable housing deposit to 5%

President William Ruto has announced a significant policy shift in the state's flagship housing project, halving the deposit required for citizens to acquire units under the Affordable Housing Program. Speaking during the 59th International Labour Day celebrations at Uhuru Gardens in Nairobi, the President confirmed that the previous 10 percent deposit requirement has been reduced to 5 percent.

The move is intended to make the transition from tenancy to homeownership more accessible for low and middle-income earners who have been contributing to the mandatory housing levy. President Ruto noted that the adjustment follows feedback from the public regarding the initial financial hurdles of the program.

Addressing a crowd of workers and union representatives, the President thanked the Kenyan workforce for their role in national development. He emphasized that the housing initiative is not just about providing shelter, but also about generating employment within the construction sector for thousands of young people.

The Affordable Housing Program, which is a central pillar of the current administration’s Bottom-Up Economic Transformation Agenda, has faced various legal and logistical challenges since its inception. By lowering the entry barrier, the government aims to increase the uptake of completed units across various sites in the country.

The 5 percent deposit rule applies across the different categories of the project, including social housing, affordable housing, and market-rate units. This change is expected to be reflected in the Boma Yangu portal, where prospective buyers track their contributions and select their preferred housing units.

Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli, who was present at the event, had previously called for measures to cushion workers against the rising cost of living. While the housing levy remains a point of debate among some labor groups, the reduction in the upfront deposit represents a tactical concession by the executive to stimulate momentum for the project.

Construction activity has intensified in several counties as the government targets the delivery of 250,000 units annually. The President reiterated that the government remains committed to ensuring that the funds collected through the housing levy are utilized transparently to address the perennial housing deficit in urban areas.

As the Ministry of Lands and Housing moves to implement this directive, attention will turn to the speed of construction and the quality of the units being delivered. For many Kenyan workers, the reduction from 10 percent to 5 percent may be the difference between remaining in the rental market and finally securing a title deed.