Housing projects face delays over Sh118bn funding deficit
Kenya's affordable housing program is facing a significant Sh118.3 billion funding deficit, leading to the stalling of 176 projects. A parliamentary report warns that the program may fail to meet its objectives unless fiscal constraints are addressed.
Why it matters
The report underscores the challenges of large-scale government infrastructure projects in emerging economies and the risks of fiscal mismanagement.
Kwa-Ngindu affordable housing project that is under construction in Kitui town /FILE President William Ruto’s flagship affordable housing programme faces a Sh118.3 billion financing gap in the new financial year, with 176 projects already stalled.
In a new report, Parliament’s budget watchdog warns that the project could fail to meet its desired objective if cautionary steps are not taken.
The Parliamentary Budget Office says the housing programme is struggling with financing constraints.
This is even as it emerged that the government has collected only Sh205.7 billion through the affordable housing levy since its inception of the required Sh1.8 trillion budget.
The State Department for Housing and Urban Development is currently overseeing 1,186 projects across four portfolios with a combined estimated cost of Sh1.8 trillion.
Only Sh198 billion had been spent on development by the end of June, leaving projects worth Sh1.56 trillion yet to be financed.
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