The government has explained that the delay in disbursing a $350 million (Sh45 billion) grant from the World Bank, meant to support urban development in 79 municipalities, is due to the pending approval of a key piece of legislation.
This was revealed during a meeting between the Senate Committee on Roads, Transportation and Housing and senior officials from the Ministry of Lands, Public Works, Housing and Urban Development.
The Committee, chaired by Migori Senator Eddy Okech, met with the Ministry to discuss progress, challenges, and future plans in the housing and urban development sector.
Principal Secretary for Housing Charles Hinga told senators that the funds under the Second Kenya Urban Support Programme (KUSP II) are ready but cannot be released until the County Government Additional Allocation (CGAA) Bill is passed by Parliament.
The grant is expected to boost infrastructure and planning in towns across the country.
The PS reported that 139,703 housing units are currently under construction across the country, while a further 346,209 units have been advertised as part of the national housing agenda.
He also disclosed that civil servants have so far received mortgage loans worth Sh470 million under a government-supported mortgage scheme.
The Ministry is also leading a major international effort known as Building Climate Resilience with the Urban Poor (BCRUP), which supports vulnerable communities in 12 African countries.
In Kenya, the Kenya Informal Settlement Redevelopment Programme (KISRP) is targeting Kilifi, Ngong, and Siaya, backed by a €6 million grant from the Government of Italy.
PS Hinga called on the Senate to support legislative changes that would make it easier for developers and homebuyers to access affordable housing.
He proposed reviewing laws to introduce better incentives, harmonizing county and national housing policies, and adopting new funding approaches like Public-Private Partnerships and social housing funds.
He assured the senators that all housing programmes align with existing national policies, including the National Housing Policy, Slum Upgrading Policy, and the National Urban Development Policy.
Cabinet Secretary Alice Wahome also addressed the meeting, acknowledging the Ministry’s heavy workload across its three departments.
She promised continued cooperation with the Senate and said any delays in project implementation would always have valid explanations.
“Chairman, we are doing our best to ensure that all projects are implemented in a timely manner. For those that delay, we ensure there is a substantive reason and possible expansion,” she said.
The Committee concluded by announcing plans to visit ongoing housing projects across counties to ensure transparency, accountability, and proper use of public funds.
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