President Ruto's Housing Project Under Fire: Critical Report Highlights Delays and Inefficiencies

Strategic Insights -

The Office of the Controller of Budget has released a scathing report on the performance of President William Ruto's flagship housing project, revealing significant delays and underperformance in the delivery of housing units and urban infrastructure. The report, submitted to Parliament in August 2025, highlights the State Department for Housing and Urban Development's struggles to meet its targets, with only 86% of the urban development budget being absorbed in the 2024/25 financial year. The project, which aims to build 200,000 housing units annually, has been marred by inadequate planning, procurement inefficiencies, poor coordination, and funding challenges.

Key Takeaways:

  • The State Department for Housing and Urban Development has allocated Sh87.57 billion in the 2024/25 financial year, but this was revised multiple times, with the final allocation being Sh82.44 billion in Supplementary Estimates III.
  • Despite available funds, the construction of housing units is far behind schedule, with only 5% completion achieved on 1,710 units in Starehe, Nairobi County, and 11% completion on 5,360 units in Mavoko, Machakos County.
  • Several housing projects have made significant progress, including the construction of 975 units in Thika and 1,848 units in Shauri Moyo, Nairobi, which are ahead of their targets.
  • The urban development budget has the lowest budget absorption rate at 86%, indicating significant underperformance in the delivery of urban infrastructure and amenities.
  • The National Housing Corporation, the Affordable Housing Board, and the Estate Agents Registration Board are among the agencies tasked with implementing the State Department's mandate, which includes promoting the management of Kenya's housing policy and developing affordable housing.
  • Sh5 billion to Sh6 billion is collected from Kenyans as housing levy every month to finance the project, but the investment plan has sparked controversy, with government officials investing Sh46 billion of housing levy funds in treasury bills.

Statistics:

  • The Affordable Housing Bill was signed into law on March 19, 2024, and the housing levy is charged at 1.5% of a worker's gross monthly income, with a matching contribution from the employer.
  • Sh2 billion in interest was realised from the housing levy billions invested in treasury bills as of February, which will be ploughed back into the fund.
  • As of February, Sh46 billion of housing levy funds had been invested in treasury bills to prevent the money from remaining idle while construction of houses was delayed.
  • The construction of 100,000 units in other parts of Kenya is at 13% completion against a target of 15%.
  • 1,050 housing units in Ruiru, Kiambu County, achieved 75% completion, ahead of the target.

Sources:

  • The August 2025 National Government Budget Implementation and Review report by Dr Margaret Nyakang'o
  • The State Department for Housing and Urban Development's mandate and implementation agencies
  • The Affordable Housing Act
  • The report of the Housing, Urban Planning and Public Works Committee of the National Assembly
  • The State Department for Housing and Urban Development's budget allocations and revisions