William Ruto: Kenyans to Get KSh 5m Low-Interest Loans for Contributing to Housing Levy

• President William Ruto announced plans for reforms to allow Housing Levy contributors to access affordable home loans of up to KSh 5 million at single-digit interest rates
• Ruto said the new facility will also enable contributors to use the funds to purchase any housing unit or offset existing mortgages
• Ruto reaffirmed the government’s commitment to delivering 150,000 housing units nationwide using financing from the Housing Levy

Elijah Ntongai, a journalist at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan and global trends.

President William Ruto has announced a major housing finance reform that will see Kenyans who contribute to the Housing Levy access affordable home loans of up to KSh 5 million at a single-digit interest rate.

Speaking during the 62nd Madaraka Day celebrations at Homa Bay's Raila Odinga Stadium on Sunday, June 1, Ruto said his administration is committed to ensuring that every shilling contributed to the Housing Levy delivers direct value to contributors.

President Ruto signed the Affordable Housing Act 2024 into law, which mandated the deduction of the Housing Levy from the salaries of all employed Kenyans.

Benefits for Kenyans contributing Housing Levy

Understandably, many salaried Kenyans raised concerns over how they would benefit from the affordable housing programme if they did not want to own the government houses.

“In recognition and appreciation of the sacrifice made by patriotic Kenyans through their contributions to the Housing Levy, I am pleased to announce today that we shall be proposing to Parliament a reform to the law that will allow any contributor to access an affordable home loan of up to KSh 5 million at a single-digit interest rate, applicable toward any housing unit in the market,” Ruto declared.

The president explained that the proposed facility will also allow contributors to use the funds to offset existing mortgages, providing greater flexibility and easing the financial burden on many Kenyan households.

“These reforms will ensure that every shilling contributed to the Housing Levy works for the contributor, whether through access to affordable housing, home loans, or mortgage relief,” he added.

The announcement comes amid rising public scrutiny of the Housing Levy, which is deducted from formal employees' salaries.

The government has consistently defended the levy as part of its broader affordable housing agenda aimed at reducing the housing deficit and stimulating job creation.

Progress in provision of affordable housing

Earlier on TUKO.co.ke, Ruto hailed Kenya’s Affordable Housing Programme as a cornerstone of his administration’s economic transformation agenda, emphasising its dual impact on addressing the urban housing crisis and generating employment.

Ruto described the initiative as a “powerful symbol” of socio-economic progress. He highlighted the recent handover of 1,080 social housing units in Nairobi’s Mukuru Estate and confirmed that the government is on track to deliver 150,000 housing units across the country.

The president announced that new homeowners will soon receive keys to completed units in Bahati and Elburgon in Nakuru County, Mabera in Kuria West, Emgwen in Nandi, Milimani in Kakamega and Vihiga counties, Nanyuki, and other regions.

These projects, Ruto said, are not only bridging Kenya’s massive housing deficit but also creating thousands of construction jobs, supporting local manufacturing through materials demand, and stimulating grassroots economic activity.

Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.

Source: TUKO.co.ke