On Wednesday, September 7, President-elect William Ruto promised to launch a new housing fund that will allow Kenyans to own homes with a Ksh5,000 monthly payment.
During a Parliamentary Group meeting at his Karen home, the outgoing Deputy President said that the plan was possible and would be cheaper for future homeowners than renting.
He said that the state had already built a one-bedroom house in Pangani for Ksh1 million, which was a lot cheaper than the prices that construction companies had given.
He said that people who want to buy the house won’t have any trouble paying the Ksh5,000-a-month mortgage. But if they want to rent the same house, they should be ready to pay around Ksh 15,000 per month.
“In the next two weeks, I want you to pay a visit to Pangan where we have a model programme for our housing. We have actually built a house for Ksh1 million. A good house with a bedroom, sitting room, kitchen, toilet and shower. The mortgage for buying that house is Ksh5,000 per month. It is the only programme where rent is going to be higher than mortgage. If you were to rent that flat, you would probably pay Ksh15,000 or Ksh20,000 but it is going to cost ksh5,000. A two bedroom, Ksh10,000 for mortgage,” he said.
He said that the idea was first brought up in 2018, but it was eventually dropped because of the political climate at the time.
The President-elect urged the Kenya Kwanza legislators to back the bill when it reaches the House floor, saying that doing so would help make his campaign promises a reality.
“We have a plan where failing is not an option. In that plan, there is a big portion that you have to help us with the heavy lifting. We will be proposing certain amendments to the law. We will be proposing some new legislation to take care of what we want to do or to facilitate the implementation of our plan.
“We will be proposing the establishment of the housing fund that is going to underpin our housing programme. “It is something that we should have done in 2018,” he explained.
It is unclear when the schedule for implementing the project’s replication across the 47 counties will begin.