Kenya’s Affordable Housing Programme spans two administrations with ambitious targets but limited delivery. Under President Uhuru Kenyatta, the Big Four Agenda aimed for 500,000 units, with only about 13,500 completed by 2022. An annual target of 200,000 was set under the current Kenya Kwanza administration; currently, the pipeline totals roughly 730,000 units, including about 92,000 under active development according to The Architectural Association of Kenya. Official handovers include at least 5–6 projects, totaling approximately 3,500 units. The attempts are commendable; however, this article will investigate five key projects that have invaluable lessons for Kenya’s housing challenge.
Projects such as Park Road (Nairobi), Milimani Estate (Vihiga), Kitui Kalawa Road (Kitui), Nyali (Mombasa), and Obunga (Kisumu) will help us evaluate the affordable housing project through four feasibility lenses: Financial viability, Technical feasibility, Social acceptance and Long-term sustainability
Park Road Affordable Housing Project
This was the first of Kenya’s government's affordable housing initiative, aligned with the Big Four Agenda started under former President Uhuru Kenyatta, aimed at improving housing conditions and local welfare in Kenya.
Before the project, the estate was made up of 48 standalone bungalows constructed during the colonial period. Situated in the Ngara district of Nairobi, approximately seven kilometers from the Nairobi CBD
It covers an area of about 32,000 square meters, a 7.9 acre parcel, with a built-up area of 123,000 square meters.
H.E. President Uhuru Kenyatta signed into law the Supplementary Appropriation Bill No. 2 of 2019, which allocated KSh 7 billion toward the Affordable Housing agenda. Construction officially commenced on February 5, 2019,comprising approximately 1,370 affordable housing units of which 822 units availed for the public at fixed prices, with the remaining 548 reserved for civil servants. The units were offered in three sizes: 30 m² (1-bedroom) at KSh 1.5 million, 40 m² (2-bedroom) at KSh 2 million, and 60 m² (2-bedroom) at KSh 3 million, all of which have sold out as per Boma Yangu Portal, 2025.
In January 2020, China State Construction handed over the 228 2-bedroom units of the first phase of the Park Road affordable housing project in Ngara to the Kenyan National Government
The units came with mixed-use facilities including retail spaces, parking, Rooftop gardens, Running track, Solar water heaters, Lifts, Retail, Commercial centre, safe children’s playground. (Source: Construction Today, 2020)
Allocation and Financing Model Summary
Units under the Affordable Housing Programme are allocated through the Boma Yangu Portal after payment of a 12.5% deposit. Buyers can choose among three main purchase options:
Outright Sale: 12.5% deposit, with the remaining balance payable within 90 days.
Mortgage Loan: Financed through the Civil Servants Mortgage Scheme or partner banks, typically at subsidized rates.
Tenant Purchase Scheme (TPS): 12.5% deposit, with monthly repayments at 7% interest per annum over 25 years.
Economic and Social Impact
The project had a significant economic and social impact, supported by regular consultative meetings and public fora that allowed stakeholders to share opinions, monitor progress, and remain informed throughout. However, it faced delays and cost overruns, particularly when the government attempted to establish a revolving fund through a mandatory 1.5% levy on salaried persons, which was challenged in court due to limited stakeholder involvement in the funding model.
In March 2023, the project underwent renovations valued at about KSh 249 million, as reported by the National Housing Corporation. The upgrades included waterproofing and tiling of flat roofs on six blocks, painting and decoration of corridors and external walls, construction of a caretaker’s house and office, and installation of a 1,000 m³ underground reinforced concrete water tank.
Milimani Estate, Vihiga, Affordable Housing Project
The Milimani Estate Affordable Housing Project is a government-led initiative implemented through Padaa Enterprises in partnership with the State Department of Housing and Urban Development (SDHUD).
Comprising 220 units across 9 blocks, the estate is located in Milimani Estate, Vihiga Town, on approximately 2 acres of government-owned land, previously housing civil servants.
At an estimated cost of KES 536 Million, the project started in September 2023 and projected to complete in August 2025, although it is still in progress, nearing completion (96% completion as at September 2025). The unit typologies for this project range from studio apartments, 1-bedroom, 2-bedroom and 3-bedroom units of either social, affordable or market-rate categories with sale prices ranging KES 640,000 to KES 3.6 Million and rent prices between KES 3,800 to KES 33,200.
Employment & Local Economic Benefits
The project has created approximately 3,000 jobs for the local community, including fabricators, welders, Jua Kali artisans, and other skilled workers, including ‘Make it use it’ welders and fabricators association of about 40 members. This aligns with the government’s strategy to increase employment through construction activity and support local micro-enterprises. The Government ring-fenced Ksh 26 million for the supply of doors and windows by the local Jua Kali artisans. (Source: KBC 2024)
Amenities & Infrastructure
The estate will feature modern mixed-use amenities, including: Underground water tanks, Borehole and backup generator, Cabro-paved driveways, Community hall, Outdoor children’s play area, Green spaces and landscaping, Sewerage and water infrastructure improvements, and commercial areas for small businesses
Kitui Kalawa Road Affordable Housing Project
The Kitui Kalawa Road Affordable Housing Project is a flagship initiative of the Kitui County Government in collaboration with Tecnofin Kenya Ltd, officially launched in December 2020.
Located along Kalawa Road in Kitui Town, the development sits on approximately 2 acres of county-owned land.
The project comprises 509 modern housing units designed to cater to different income levels. It was envisioned to be completed within 24 months from its launch, by late 2022 or early 2023. It has since made significant progress through phased construction, with reports in 2025 indicating that the development is nearing completion, and some units are already available for occupancy.
Housing Units and Pricing
The units are designed with a range of sizes and affordability options as follows: (Boma Yangu 2025)
1-Bedroom Unit: 30 sqm — KES 1.5 million (Deposit: KES 300,000)
2-Bedroom Unit: 45 sqm — KES 2.5 million (Deposit: KES 500,000)
3-Bedroom Unit: 60 sqm — KES 3.5 million (Deposit: KES 700,000)
3-Bedroom Deluxe Unit: 80 sqm — KES 6.5 million (Deposit: KES 1.3 million)
Design and Amenities
Key critical amenities have been planned including solar-powered street lighting, reliable water supply and sanitation infrastructure, ample parking, green landscaped spaces, pedestrian pathways and community recreational areas.
Economic and Social Impact
The project emphasizes local economic empowerment, with local youths and artisans engaged in construction, fabrication, and finishing works. The County Government has also prioritized local sourcing of materials to stimulate economic growth in the region. By ring-fencing key contracts for small-scale suppliers and Jua Kali artisans, the initiative promotes inclusive development and skills transfer within the community.
Overall Significance
The Kitui Kalawa Road Affordable Housing Project stands as a model for county-led housing initiatives aligned with Kenya’s Affordable Housing Program. It not only expands access to decent housing but also contributes to job creation, local enterprise development, and the greening of urban living environments.
The Nyali Affordable Housing Project
The 7 Billion Nyali Affordable Housing Project is situated in Mombasa County, occupying a 23-acre parcel of land in the upscale Maweni Sub-Location of Nyali Constituency. Specifically, the site is near the Kenya Broadcasting Corporation (KBC) offices, situated along the Mombasa-Malindi highway, close to Bombolulu.
The housing units are divided into Social Housing, Affordable Housing, and Market Housing.
While the location was initially on the verge of being turned into a dump site, all the trees in the 23-acre prime land were preserved.
The Nyali Affordable Housing Project commenced in February 2025 entailing the construction of 1,932 units in 14 residential blocks, comprising Studio apartments, Two-bedroom units, and Three-bedroom units.
As of September 2025, the project was 28% done with the Project Architect Aggrey Maganga affirming that the market component was expected to be complete in October 2026, while the whole housing project would be ready in February 2027.
Over 8000 residents are expected to visit the site and use the amenities daily. 1000 people are expected to take up the market stalls, which have been designed to accommodate 10000 people per day. The schools have a total of about 40 classrooms from ECDE to the Junior Secondary School, that is, almost 2000 students at the site.
The project has seven different typologies ranging from single rooms(20 sqm) to three-bedroom units(80 sqm) with prices ranging KES 640,000 to KES 4.8 Million respectively.
Economic and Social Development
The project has surpassed the 30 per cent local participation target set by Kenya’s Access to Government Procurement Opportunities (AGPO) programme, which promotes inclusive economic growth by involving local suppliers, youth, and women in government projects. The project has been embraced by all the stakeholders, including the owner of the land, the Kenya Broadcasting Corporation KBC, whose facilities at the land will be upgraded.
Amenities
At ground level, landscaped courtyards and pedestrian walkways connect the blocks, creating a cohesive environment. The development includes a Multi-Use Development (MUD), an Early Childhood Development institution, a primary school, junior secondary schools, as well as a market with 1,000 stalls, a commercial building, a community centre, and a clubhouse. Additional infrastructure comprises a waste water treatment plant, a Level 4 hospital, and a swimming pool, enhancing both livability and social cohesion within the community as reported by KBC,2025.
The Kisumu Obunga Estate Housing Project
The Kisumu Obunga Estate housing project is part of a KSh 2.7 billion urban renewal initiative jointly implemented by the Kisumu County Government and UN-Habitat under the Partnership for the Implementation of the New Urban Agenda (PINUA) plan.
The agreement was signed in October 2025, with implementation scheduled to start on November 1, 2025.
The project aims to regenerate dilapidated estates and upgrade informal settlements such as Kibuye, Milimani, Ondiek, Lumumba, Kaloleni, and Obunga. It supports Kisumu’s vision to transform into a modern, inclusive, and sustainable city by improving housing conditions, formalizing land tenure, and enhancing access to social infrastructure.
Location and Land Use
The project focuses on Obunga Estate, an informal settlement area within Kisumu County, previously characterized by informal housing, insecure land tenure, and limited access to basic services.
Innovative ownership models are being introduced in Obunga and Kaloleni, where residents without formal land titles will be allowed to co-own floors or units within new apartment buildings, giving them shared legal ownership of redeveloped housing built on the same land.
Having been launched in November 2025, the pilot phase kicks off in January 2026 in Kibuye Estate with the construction of two blocks hosting 24 housing units. Full implementation will deliver 360 affordable 1-and 2-bedroom apartment units. Five old blocks in Kibuye will be demolished to make room for two high-rise buildings, ensuring half of the existing residents are rehoused within the new units rather than displaced as reported on Capital News.
The development will feature a total of nine blocks offering a mix of unit types, including 1-bedroom units at approximately KSh 1.8 million, 2-bedroom units at KSh 2.4 million, and 3-bedroom units at KSh 2.7 million. All units are intended to remain part of the county’s rental housing stock and will not be sold privately, ensuring long-term affordability and availability for residents.
Amenities and Design Features
The Obunga project integrates social infrastructure and community amenities, including Schools and Early Childhood Development (ECD) centres, sanitation facilities and reliable water connections, public open spaces and green areas, Improved roads, walkways, and lighting.
Comparisons Across the Projects - Hits & Misses
1. Financial Viability “Can the Money Hold?”
Affordability: Across projects, unit prices (KES 640,000–3,600,000) align with the AHP’s target of reaching lower-middle-income earners.
The Tenant Purchase Scheme (TPS), requiring a 12.5% deposit and 7% interest over 25 years, improves access. However, in practice, even low-tier units can still exceed the reach of informal-sector workers whose median monthly incomes are below KES 25,000. Using the UN 30% limit for affordable housing, the maximum they can pay for housing is KSh7,500 per month
Demand and Uptake: Park Road and Nyali units are reported as “sold out,” showing strong demand among salaried earners. Vihiga and Kitui projects attract mixed demand through tiered unit pricing, ensuring inclusivity.
Financing Mix: Most projects rely on public land and partial private financing, often through PPPs. Obunga’s partnership with UN-Habitat and the EU introduces international development finance, while Kitui uses county developer collaboration.
2. Technical and Construction Feasibility “Can It Be Built Well and on Time?”
Delivery and Progress: Park Road reached full completion (2021) after initial delays, establishing Kenya’s modern prototype for affordable housing. Vihiga Milimani (96% complete, 2025) and Nyali (28% complete) show steady progress within projected timelines.
Build Rate and Quality: Park Road’s later renovations (worth KES 249M) indicate quality concerns but also strong post-completion monitoring. Vihiga and Kitui emphasize locally sourced materials, enhancing cost efficiency and ownership.
Technical Standards: Newer projects integrate sustainability measures, solar water heating (Park Road), solar street lighting (Kitui), and water treatment (Nyali). County quality oversight through NCA inspections appears stronger where national partnerships exist.
3. Social Acceptance & Inclusivity “Who Feels Part of It?”
Community Engagement: Vihiga and Kitui lead in local involvement, reserving contracts (KSh 26M in Vihiga) for Jua Kali artisans and small suppliers. Nyali surpasses the 30% AGPO inclusion target, engaging youth and women.
Resident Integration: Obunga sets a new benchmark in inclusive urban renewal, prioritizing co-ownership for original settlers and in-situ upgrading rather than eviction.
Public Perception: Where local participation is high, acceptance follows. The transparent engagement in Vihiga contrasts with the early resistance faced by Park Road due to limited consultation during the 1.5% housing levy rollout.
4. Market Demand, Affordability & Long-Term Sustainability “Will It Last?”
Accessibility and Location: Urban projects (Park Road, Obunga, Nyali) benefit from proximity to jobs and transport, while county projects (Vihiga, Kitui) provide lower land costs and regional economic boosts.
Occupancy and Maintenance: Park Road achieved full occupancy under public-civil servant allocations.
Environmental and Design Resilience: Nyali and Kitui integrate solar and water systems, Park Road adds rooftop gardens, and Obunga introduces green public spaces. The emerging trend is toward sustainable, mixed-use urban ecosystems rather than isolated housing estates
Summary
Kenya’s affordable housing landscape is advancing from symbolic flagship projects to functional, context-aware systems that balance social inclusion, fiscal realism, and technical delivery. Financially, the 12.5% deposit and TPS model broaden access but still exclude many low-income earners. Technically, construction timelines and renovation records reveal improving standards, though consistent post-completion audits are vital. In terms of tenure, innovative ownership models will allow residents without formal land titles to co-own floors or units in the redeveloped apartments. Socially, the greatest success lies in inclusive participation where communities, artisans, and counties co-create outcomes, as seen in Vihiga and Obunga.
Together, these projects demonstrate that Kenya’s housing transformation is steadily addressing the nation’s annual housing deficit of 250,000 units. While significant strides are being made to provide quality homes for the middle class, the most vulnerable, those in the lowest income brackets, remain underserved. Moving forward, ensuring that affordable housing initiatives are truly inclusive, integrating innovative ownership models, social support, and targeted subsidies, will be essential for achieving equitable urban development to leave no one behind.
Construction Insights is a section of DezynBild Consult, that provides insights on architecture, real estate & construction and reviews of public projects.
This particular piece was put together by Lameck Owesi and Collins Njoga, through a period of detailed research. Edited by Herald Aloo.
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