Wamuzi News Ke
Kenyans living in rural areas are set to benefit from a sweeping housing reform after Parliament approved new regulations that will allow individuals to access loans of up to Sh4 million from the Affordable Housing Fund.
The move marks a major milestone in the government’s push to expand affordable housing beyond urban centers and address long-standing inequalities in home ownership.Under the new rules, rural homeowners can apply for the loans provided they meet specific conditions, including proof of voluntary savings to the Fund and compliance with all set requirements.
Applicants who have previously benefited from affordable housing projects will be excluded.Those seeking the loans will also be required to present detailed documentation such as building approvals, land ownership records, valuation reports, and bills of quantities.
Applicants must also declare in writing that the funds will strictly be used for rural housing development.Once approved, the Affordable Housing Board will disburse the money directly to the applicant’s account.
The loan will be secured by registering a charge against the property, and beneficiaries will be required to take out a life insurance cover equivalent to the loan amount.The Affordable Housing Fund is financed through a levy deducted at 1.5 percent of employees’ gross monthly pay, with employers contributing a matching amount.
Non-salaried individuals are also required to contribute an equal percentage of their income.Beyond offering loans, the new regulations set out detailed procedures on how housing units will be allocated, how defaults will be handled, the interest or administrative fees to be charged, and the conditions for exempted groups.
Housing Cabinet Secretary Alice Wahome has described the new rules as a progressive step toward bridging the rural housing gap, noting that while the regulations may exert some financial strain, they are expected to boost economic activity in construction, real estate, and related industries.
The policy shift is expected to not only improve living conditions for thousands of rural families but also stimulate growth in local economies as demand for building materials, skilled labor, and related services rises sharply.
Stephen Musungu
