Ruto Reduces Affordable Housing Deposit to 5% for Kenyan Workers

President William Ruto has announced a major change in the Affordable Housing Programme by reducing the required deposit from 10% to 5%. The move is meant to help more Kenyan workers afford to buy homes.

The announcement was made during Labour Day celebrations on May 1, 2026, where the President said the new rule is already part of government housing regulations.

According to Ruto, the promise he made earlier to workers has now been fulfilled. He confirmed that all salaried Kenyans applying for affordable housing units will now only need to pay a 5% deposit instead of 10%.

This change is part of the government’s wider plan under the Affordable Housing Programme, which falls under the Bottom-Up Economic Transformation Agenda (BETA). The goal is to make it easier for Kenyans from different income levels to own homes.

Government documents released earlier show that the reduced deposit is aimed at helping people move from renting houses to owning their own homes without too much financial pressure.

The housing allocation system is also guided by income levels and contributions made through the Housing Levy.

The decision came after discussions between the government, through the Ministry of Lands and Housing, and key stakeholders like the Central Organisation of Trade Unions (COTU).

These talks focused on making the housing programme more accessible and fair for workers across the country.

The Affordable Housing Programme is being managed under the Affordable Housing Regulations 2024, which guide how houses are built and allocated.

Priority is given to salaried Kenyans who are actively contributing to the Housing Levy. There is also a special committee in place to oversee how funds are used and managed.

The government is also working with groups such as Maendeleo Ya Wanawake to support housing projects using the Affordable Housing Fund.

Even with these changes, the programme is still facing some challenges. Reports show that there have been funding issues, delays in construction, and a shortage of staff.

There are also concerns that some employers are not fully remitting the Housing Levy as required.

By mid-2025, the programme had collected billions of shillings, but only a small number of housing units had been completed compared to the target.

Some of the funds are still held in government investments as the projects continue.

The government says it is working on improving the programme and speeding up housing delivery across the country.

Reducing the deposit to 5% is one of the key steps meant to encourage more Kenyans to apply and benefit from the programme.