President William Ruto has pledged to back a sweeping constitutional reform that could revolutionize homeownership in Kenya.

Standing before a packed crowd at the 62nd Madaraka Day celebrations in Homa Bay, Ruto dropped a bombshell: Kenyans may soon access mortgage loans of up to Ksh5 million at unheard-of, single-digit interest rates—a move that could reshape the housing landscape forever.

“I’m bringing to Parliament a bold legislative change,” declared the President. “Every contributor will be eligible for an affordable home loan—up to Ksh5 million—at a low interest rate, applicable to any house in the market.”

But that’s not all. In a dramatic twist, Ruto added that the same facility will also help struggling homeowners refinance their existing mortgages, potentially slashing their monthly payments and easing financial pressure for thousands.

This announcement comes hot on the heels of a landmark housing milestone in Nairobi’s Mukuru Kwa Reuben, where 1,080 citizens were recently handed keys to new rent-to-own apartments—part of a 30-year housing program that many are hailing as revolutionary.

Ruto, clearly energized by the momentum, also presided over the handover of 110 more units in Homa Bay’s Boma Yangu estate, reinforcing his commitment to the affordable housing dream.

But behind the curtain of opportunity lies a controversial funding mechanism: the Housing Levy. Since March 19, 2024, all Kenyan workers have seen 1.5% of their gross salaries deducted, matched equally by their employers.

Yet, there’s a silver lining. In a rare win for taxpayers, those making these deductions are now eligible for a 15% tax relief on home expenses—up to Ksh108,000 per year or Ksh9,000 monthly. That’s real money back in Kenyans’ pockets.

Adding to the financial relief, starting late 2024, deductions for the Housing Levy, Social Health Insurance Fund (SHIF), and post-retirement medical contributions were classified as tax-deductible, significantly lowering workers’ Pay-As-You-Earn (PAYE) tax obligations.

This shift means taxpayers are no longer being hit twice. Before, these mandatory deductions were still taxed—now, they’re exempt, offering long-overdue breathing room for Kenya’s overburdened working class.

As the dust settles on this Madaraka Day, one thing is clear: Ruto is betting big on housing, and the impact could be felt across every county in Kenya. Whether it’s a masterstroke or a political gamble remains to be seen—but for now, hope is rising faster than concrete.