President William Ruto’s Affordable Housing Program is at risk of stalling over due to a shortfall in funding.
Speaking on Wednesday, March 18, while appearing before the National Assembly’s Housing Committee, Principal Secretary for the State Department for Housing Charles Hinga warned of a possible project stall if funds are not allocated promptly.
Hinga noted that under the proposed 2025/2026 financial year Supplementary Budget, a reduction of Ksh800 million has been made to the program’s donor funding allocation, lowering the total budget from Ksh13.341 billion to Ksh12.541 billion.
The Housing PS noted that the decrease will significantly affect 1,700 ongoing housing projects.
“It will be a grave mistake to stall projects at various stages across the country. We risk disrupting an economy that had started to pick up,” he stated.
PS Hinga also highlighted a personnel shortage, noting that some officers are working up to three shifts due to understaffing.
Buuri Member of Parliament Mugambi Rindikiri, who is the vice chair of the committee, questioned PS Hinga whether the Department had anticipated the funding shortfall or if it was a case of poor planning, and why more staff had not been recruited.
Hinga confirmed that the Department had anticipated the funding inadequacy, having already utilised 80 per cent of the allocated budget.
He added that although the Department had saved some funds in Treasury Bills, the National Treasury has declined to allow access to the funds.
“We have invested money in Treasury Bills, which are maturing, but if the Treasury does not create fiscal space in the Supplementary Budget, I will not be able to spend it even as certificates of completed works continue to come in,” Hinga stated.
On staffing, the Housing PS stated that a request for additional personnel had been submitted but was not approved.
The Housing committee said it will engage the Cabinet Secretary for the National Treasury and Economic Planning, John Mbadi, to seek further clarification on the matter.
