President William Ruto has confirmed new changes to the housing levy aimed at expanding access to affordable housing for all Kenyans.

In a dispatch released on Tuesday, June 24, the Cabinet announced the reduction of the housing deposit requirement from 10 per cent to 5 per cent, as part of efforts to operationalise the Affordable Housing Programme, a key pillar of President Ruto’s Bottom-Up Economic Transformation Agenda (BETA).

According to the statement, the reduced deposit is intended to boost Kenyans’ participation in the Affordable Housing Programme and improve their chances of home ownership.

“This reform is about equity and opportunity,” the Cabinet dispatch stated. “By easing the financial burden on ordinary Kenyans, we are enabling more families to move from renting to owning dignified, decent housing.”

A section of the Cabinet during a meeting at State House Nairobi on March 11, 2025.

PCS

Beyond the lowered deposit, new regulations under the Affordable Housing Regulations, 2024, have also established a legal framework for a more inclusive and transparent allocation process across all income groups.

Following the Cabinet dispatch, any Kenyan wishing to own a home under the Affordable Housing Programme will now be required to pay a 5 per cent deposit, as opposed to the earlier 10 per cent.

Discussions around reducing the initial deposit gained momentum in June 2025, following a meeting between Housing Principal Secretary Charles Hinga and Members of the National Assembly Committee on Housing, Urban Development and Public Works on Saturday, June 21.

During the engagement, PS Hinga emphasised that Kenyans could soon benefit from a reduction in the required deposit from the current 10 per cent to 5 per cent.

Prior to that, COTU Secretary General Francis Atwoli held a high-profile engagement with the president, where several resolutions were made, including refunds to the Housing Levy Fund for all the money used in the construction of markets, despite government assistance to divert the funds to other infrastructure projects like schools and markets.

Subsequently, a special committee will be constituted under the Affordable Housing Board, with representation from both national and county governments, to oversee the recovery and rechanneling of funds from already constructed markets back into the fund.

The President also agreed that priority for houses built under the programme will go to salaried Kenyans who contribute to the fund.

All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category.

President William Ruto interacting with workers at the Affordbale Housing Programme in Garissa, Thursday, February 6, 2025.

PCS