The Cabinet has approved the Affordable Housing Regulations, 2024, introducing a policy framework that is meant to make homeownership more accessible and equitable for Kenyans. 

In a dispatch to newsrooms, the Cabinet announced the reduction of the housing deposit requirement from 10 percent to 5 percent, as part of efforts to operationalise the Affordable Housing Programme, a key pillar of President Ruto’s Bottom-Up Economic Transformation Agenda (BETA).

“The regulations also provide for equitable housing allocation across different income groups and access to low-interest or low-monthly-payment home loans. They further include structured deposit assistance for individuals who are unable to make upfront payments,” reads the dispatch in part.

The lowering of the deposit is intended to boost Kenyans’ participation in the Affordable Housing Programme and improve their chances of home ownership. “This reform is about equity and opportunity. By easing the financial burden on ordinary Kenyans, we are enabling more families to move from renting to owning dignified, decent housing,” said the Cabinet.

The new framework provides legal clarity and structure for the implementation of affordable housing projects nationwide and is part of the government’s commitment to delivering the Bottom-Up Economic Transformation Agenda (BETA).

Other than boosting access and affordability, the regulations also govern the development, design, and maintenance of affordable and institutional housing across all 47 counties.

They also support long-term financing mechanisms for both developers and homebuyers and ensure the provision of essential services and maintenance in completed housing schemes.

In the same session, the Cabinet approved the Public Procurement and Asset Disposal (Amendment) Bill, 2025, which proposes sweeping reforms to modernise and enhance transparency in government procurement processes.

The proposed amendments update the 2015 Procurement Act and align it with international best practices, incorporating lessons learned over nearly a decade of implementation.

A major provision in the new Bill is the formal designation of electronic procurement (e-procurement) as the default system for all public procurement activities. “This shift is aimed at increasing transparency, reducing inefficiencies, and combating corruption,” the dispatch stated.

The Bill also introduces bold reforms such as clear targets and thresholds for local supplier participation in public tenders, and provisions to ease access for small and medium-sized enterprises (SMEs), to empower local contractors and stimulate domestic production.

The President also agreed that priority for houses built under the programme will go to salaried Kenyans who contribute to the fund. All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category.

However, the amendments propose stronger support for disadvantaged groups, including women, youth, and persons with disabilities, ensuring their greater inclusion in public procurement opportunities.

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