The housing department is set to receive the lion’s share of Sh47.25 billion after the Treasury reorganised its spending plan in favour of President Uhuru Kenyatta’s “Big Four” economic plan.

The Supplementary Appropriation Bill No. 2 of 2018 signed into law by President Uhuru Kenyatta on Tuesday authorises the Treasury to release Sh21 billion from the Consolidated Fund to the housing department, the unit which is steering the “affordable homes” project.

This comes just days after the Cabinet passed the affordable homes guidelines last week. Housing is one of the four sectors of focus in Mr Kenyatta’s “transformational journey” through the second term which comes to an end in 2022.

“The allocations in the new law reflect a significant reduction from what was allocated in the last financial year which is in line with the ongoing austerity measures aimed at cutting down Government expenditure.”


State House said in a statement The president has also authorised the release of Sh873 million to the Wildlife department and Sh2 billion for promotion of tourism. Other beneficiaries include Public Works ministry with Sh1.9 billion and the Judiciary which will get Sh1.5 billion.

The Cabinet last week approved rules to guide participation of investors, contributors and beneficiaries of the about one million low-cost homes that the Jubilee administration has sought to provide within the next five years.

The guidelines also set standards for financing, costing and design to ensure the houses are of high quality and affordable.

Housing officials, however, said the earliest Kenyans can get the finer details is later this week. Officials had earlier indicated that 80 per cent of the low-cost houses (800,000 units) will be delivered under public private partnerships (PPPS) while 200,000 will be social housing.

The plan is part of efforts aimed at bridging the country’s housing deficit which stands at 1.85 million units.