The Kenyan government has issued a strong rebuttal to a recent Daily Nation article, dismissing claims of low uptake for President William Ruto’s Affordable Housing Program (AHP) and labelling the report as mischievous and deliberately misleading.
The Daily Nation article, published on August 6, 2024, suggested that government agencies were stuck with stocks of unsold housing units under the AHP.
However, the Executive Office of the President, through the Office of the State House Spokesperson Hussein Mohamed, clarified that the audit report referenced by the Daily Nation pertained to housing projects initiated before President Ruto assumed office in September 2022 and were not part of the AHP.
“We take note of a headline story published by the Daily Nation today, August 6th, 2024, titled ‘Puzzle of Ruto Housing Projects,’ which inaccurately suggests there is a low uptake for the Government’s Affordable Housing Program (AHP), with government agencies allegedly stuck with stocks of unsold units. The story is not only mischievous but also deliberately misleading,” Mohamed said in a statement issued on Tuesday, August 6, 2024.
“First, it is worth noting that the reporting in the media is largely anchored on the Auditor General’s audit report that focused on housing projects that were designed and launched well before President Ruto assumed office in September 2022 and are, therefore, not in any way related to the AHP. None of the housing projects listed in the newspaper story fall under the AHP,” he added.
The Affordable Housing Program, a cornerstone of President Ruto’s Bottom Economic Transformation Agenda (BETA), was meticulously planned and detailed in the Kenya Kwanza manifesto, the platform on which Ruto was elected.
This initiative aims to fulfil the constitutional mandate under Article 43(b), which guarantees every Kenyan the right to accessible and adequate housing, and to reasonable standards of sanitation.
In the press statement, Mohamed highlighted the program’s unique approach, which differentiates it from previous housing initiatives.
According to the State House spokesperson, the AHP incorporates specific policy measures to reduce housing costs, such as utilizing public land, providing free last-mile services (sewerage, electricity, water, internet), and exempting construction inputs from value-added tax (VAT).
These measures, according to Mohamed, have enabled the National Housing Corporation (NHC) to offer units priced between Ksh1 to Ksh3 million, compared to the previous range of Ksh7 to Ksh8 million.
State House says that contrary to the claims of low demand, the government reported high uptake for AHP units.
“For example, the government demolished 39 units of old houses in Park Road, Nairobi, and replaced them with 1,370 affordable units, all of which were sold out within 90 days.
“To illustrate the huge demand for affordable housing, when half of the 1,370 units at Park Road were offered to members of the public, over 33,000 Kenyans paid deposits of at least 10 percent.
“Most of those who missed out have not asked for a refund of their money and are instead waiting to be allocated other units under the AHP. In a nutshell, we do not have a demand problem for the Affordable Housing Program,” Mohamed explained.
Boma Yangu
The government also refuted assertions about the failure of the Boma Yangu initiative, which the Daily Nation claimed had only attracted 30,000 savers.
State House says that as of August 6, 2024, over 531,943 Kenyans were saving more than Ksh2.255 billion under the program.
This information, the government emphasized, is publicly accessible, questioning the motives behind the Daily Nation’s reporting.
“Since September 2022, 103,000 affordable housing units have been launched and are in various stages of construction across the country, directly and indirectly creating 160,000 jobs for the Kenyan people and thousands more through opportunities for MSMEs in the supply chain.
“For example, the Kibera Jua Kali Association, which brings together more than 300 artisans, was recently awarded a contract to supply metallic and wooden doors and windows worth Ksh720 million under AHP. These are real jobs and opportunities for deserving Kenyans!” Mohamed said.
While acknowledging issues with past housing projects, the government stated that these were being addressed.
“For example, in the case of NHC projects quoted in the story, it is true that the project launched in 2013 proved to be expensive at a cost of Ksh 7 million per unit, prompting a low uptake. The NHC has since converted this to a Tenant Purchase Agreement (TPS) and has since realized improved uptake.”
The State House reiterated that the Kenya Development Corporation Housing units mentioned in the Daily Nation article, constructed between 2011 and 2015, do not fall under the AHP but are part of a separate housing investment scheme managed by a state corporation.
The government’s comprehensive response aims to clarify misconceptions and affirm its commitment to the Affordable Housing Program as a pivotal component of Kenya’s socioeconomic development strategy.