- KSh 64.5B set aside for affordable housing units.
- KSh 10.5B allocated for social housing projects.
- Informal settlements get KSh 7.2B under the improvement plan.
- CS Mbadi stresses job creation through the construction sector.
- KSh 2.6B to enforce building rules and industry safety.
The government has revealed a proposed KSh 128.3 billion plan in the 2025/2026 budget meant to push housing, urban development, and infrastructure improvements across Kenya. The move is in line with the Kenya Kwanza government’s goal to fix the housing crisis while also opening up job opportunities in the construction sector.
Of the total budget, KSh 64.5 billion will go directly into constructing Affordable Housing Units, while KSh 10.5 billion will support Social Housing Units for low-income families. These projects are expected to benefit thousands and stimulate activity in local supply chains.
KSh 7.2 billion has been earmarked for the second phase of the Kenya Informal Settlement Improvement Project, aiming to uplift slum conditions. Another KSh 3.5 billion will cater to new homes for police officers and prison staff, while KSh 500 million goes into the Building Climate Resilience of the Urban Poor (BCRUP) initiative.
The Kenya Urban Programme (KenUP) has been allocated KSh 13.4 billion to upgrade city environments. In addition, KSh 454 million will be used to build County Headquarters, and KSh 184 million is set for constructing footbridges in key urban locations for improved pedestrian safety.
To boost safety and compliance in the building industry, KSh 2.6 billion has been proposed for regulation and oversight. These funds will help ensure structures meet code requirements, encourage sustainable practices, and promote better project management across the country.
A Core Pillar of the Bottom-Up Agenda
Treasury CS John Mbadi, who tabled the budget, highlighted that the Affordable Housing Programme is not just about homes — it’s a lifeline for job creation and grassroots economic growth. He added that the ongoing housing efforts are a key part of the Bottom-Up Economic Transformation Agenda.
“The Affordable Housing Programme is not only addressing the housing deficit but also creating jobs and stimulating the local economy,” said Mbadi.
