# LEGAL, POLICY AND INSTITUTIONAL REVIEW OF THE AFFORDABLE HOUSING SECTOR IN KENYA

**The book includes summaries and evaluations of over 140 statutes, policies and regulations, and provides further access to and interpretation of 48 cases.  We welcome readers to engage with the content, providing commentary, additional relevant cases, updates etc., so that this becomes a live resource for the benefit of all working in Kenya’s affordable housing sector.**  &#x20;

For more information, and to submit your comments, please contact Beatrice Mwangi at <beatrice@housingfinanceafrica.org>

&#x20;Last updated: <mark style="background-color:orange;">**March 2025**</mark>

Date first released: 1 Nov 2022 Version: 1.0

Authors: Muriuki Muriungi (Partner, KMK Africa Advocates LLP), Seeta Shah (Affordable Housing Specialist, FSD Kenya) with contributions from CAHF.

Maintained & Updated by: The Centre for Affordable Housing Finance in Africa (CAHF) in partnership with KO Associates LLP.

<div align="center"><figure><img src="https://3363602505-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FzXOWBiJTYJM57eEq86or%2Fuploads%2F4m7z52kLdU9alkwOCzfj%2Ffsd%20kenya%20logo.png?alt=media&#x26;token=b25b9744-c6dc-4db0-b3a0-b752c3d4c154" alt="" width="188"><figcaption><p>This book was prepared with funding from <a href="https://www.fsdkenya.org">FSD Kenya</a></p></figcaption></figure></div>

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Affordable housing is a key pillar of Kenya’s overall growth strategy, an explicit focus of the Ministry of Housing and Urban Development, and a key point of attention for developers, financiers and investors. While the Affordable Housing Programme has been underway for six years, its progress has been shaped by the policy, legislative and institutional framework that governs Kenya’s land, planning, construction and finance sectors.&#x20;

<mark style="color:orange;">Article 43 of the Constitution of Kenya under the Bill of Rights provides that every person has the right to accessible and adequate housing.  Kenya's policy and regulatory framework seeks to give effect to these rights.</mark>

Accordingly, the State is obligated to take steps towards achieving this socio-economic right to its citizens, either directly or by encouraging delivery by the private sector to the wider market. In particular, the 2017–2022 government administration promoted the role of affordable housing within its Big Four Agenda (consisting of Affordable Housing, Manufacturing, Food Security and Affordable Health care).&#x20;

While there has been some progress in delivering housing units by the Government both directly and by the private sector within this context of reforms, there have been challenges largely arising from some failures in policy, legal and institutional design. A key challenge is the length, breadth and complexity of the housing value chain.&#x20;

This policy, legal and institutional review serves two central aims:&#x20;

* *First*, is to provide a lay of the land on the policy, legal and institutional frameworks governing housing in Kenya; and&#x20;
* *second*, is to assess the effectiveness of the policy, legal and institutional framework in achieving the constitutional imperative of access to decent housing, with a view to identifying gaps and opportunities for improvement.

The structure of this report is as follows: The overall housing value chain and institutional framework are described in Sections 2 and 3.  Section 4 then sets out the overall policy framework, structured in terms of the housing value chain.  The sections which follow provide brief summaries of the laws in respect of each value chain link and identify gaps and propose recommendations. Thereafter, annexes for each value chain link detail some of the substantive provisions of each of the laws reviewed.  <mark style="color:green;">Recommendations in this review are highlighted in green.</mark>

This document has been developed to bring stakeholders together to engage on the most critical areas for regulatory reform in the housing value chain. The report is not prescriptive but rather a best attempt at assessing the vast library of laws, policies and regulations that apply to the housing value chain in Kenya. It is hoped that the report will serve as a baseline for further dialogue in the industry, particularly in prioritizing what regulatory reforms are most required and coming together to support these reforms.

## LIST OF ABBREVIATIONS <a href="#toc115767325" id="toc115767325"></a>

<table data-header-hidden data-full-width="true"><thead><tr><th width="177"></th><th></th></tr></thead><tbody><tr><td>ADP</td><td>Annual Development Plan</td></tr><tr><td>AHP</td><td>Affordable Housing Programme</td></tr><tr><td>BORAQS</td><td>Board of Registration of Architects and Quantity Surveyors</td></tr><tr><td>CA</td><td>Communications Authority of Kenya</td></tr><tr><td>CAK</td><td>Competition Authority of Kenya</td></tr><tr><td>CDT</td><td>Commissioner of Domestic Taxes</td></tr><tr><td>CECM</td><td>County Executive Committee Member</td></tr><tr><td>CGT</td><td>Capital Gains Tax</td></tr><tr><td>CGV</td><td>Chief Government Valuer</td></tr><tr><td>CIDP</td><td>County Integrated Development Plan</td></tr><tr><td>CLF</td><td>Central Liquidity Fund</td></tr><tr><td>CoG</td><td>Council of Governors</td></tr><tr><td>CPD</td><td>Continuous Professional Development</td></tr><tr><td>CPI</td><td>Consumer Price Index</td></tr><tr><td>CPLUDP</td><td>County Physical and Land Use Development Plan</td></tr><tr><td>CPLUPC</td><td>County Physical and Land Use Planning Consultative Forum</td></tr><tr><td>DGF</td><td>Deposit Guarantee Fund</td></tr><tr><td>DGPP</td><td>Director General of Physical Planning</td></tr><tr><td>e-DAMS</td><td>Electronic Development Application Management System</td></tr><tr><td>EBK</td><td>Engineers Board of Kenya</td></tr><tr><td>EIA</td><td>Environmental Impact Assessment</td></tr><tr><td>EPRA</td><td>Energy and Petroleum Regulatory Authority</td></tr><tr><td>FRC</td><td>Financial Reporting Centre</td></tr><tr><td>GDP</td><td>Gross Domestic Product</td></tr><tr><td>GIS</td><td>Geographic Information System</td></tr><tr><td>IPDU</td><td>Integrated Project Delivery Unit</td></tr><tr><td>JV</td><td>Joint Venture</td></tr><tr><td>KenInvest</td><td>Kenya Investment Authority</td></tr><tr><td>KENSUP</td><td>Kenya Slum Upgrading Programme</td></tr><tr><td>KISIP</td><td>Kenya Informal Settlements Improvement Programme</td></tr><tr><td>KFS</td><td>Kenya Forest Service</td></tr><tr><td>KMRC</td><td>Kenya Mortgage Refinance Company</td></tr><tr><td>KNBS</td><td>Kenya National Bureau of Statistics</td></tr><tr><td>KRA</td><td>Kenya Revenue Authority</td></tr><tr><td>KRB</td><td>Kenya Roads Board</td></tr><tr><td>LPLUDP</td><td>Local Physical and Land Use Development Plan</td></tr><tr><td>LSK</td><td>Law Society of Kenya</td></tr><tr><td>MLoPP</td><td>Ministry of Lands and Physical Planning (under previous regime, changed in October 2022 to Ministry of Lands, Public Works, Housing and Urban Development)</td></tr><tr><td>MTIHUDPW</td><td>Ministry of Transport, Infrastructure, Housing, Urban Development and Public Works (under previous regime, changed in October 2022 to Ministry of Roads and Transport)</td></tr><tr><td>NCA</td><td>National Construction Authority</td></tr><tr><td>NEAP</td><td>National Environmental Action Plan</td></tr><tr><td>NEMA</td><td>National Environment Management Authority</td></tr><tr><td>NHC</td><td>National Housing Corporation</td></tr><tr><td>NHDF</td><td>National Housing Development Fund</td></tr><tr><td>NIFCA</td><td>Nairobi International Financial Centre Authority</td></tr><tr><td>NLIMS</td><td>National Land Information Management System</td></tr><tr><td>NPLUDP</td><td>National Physical and Land Use Development Plan</td></tr><tr><td>PDP</td><td>Physical Development Plan</td></tr><tr><td>PPPS</td><td>Public-Private Partnerships</td></tr><tr><td>REITS</td><td>Real Estate Investment Trusts</td></tr><tr><td>RIT</td><td>Rental Income Tax</td></tr><tr><td>SACCO</td><td>Savings and Credit Cooperative Society</td></tr><tr><td>SASRA</td><td>SACCO Societies Regulatory Authority</td></tr><tr><td>SDHUD</td><td>State Department of Housing and Urban Development</td></tr><tr><td>SDPW</td><td>State Department of Public Works</td></tr><tr><td>SPVs</td><td>Special Purpose Vehicles</td></tr><tr><td>SEA</td><td>Strategic Environmental Assessment</td></tr><tr><td>UFAA</td><td>Unclaimed Financial Assets Authority</td></tr><tr><td>UFATF</td><td>Unclaimed Financial Assets Trust Fund</td></tr><tr><td>VAT</td><td>Value Added Tax</td></tr><tr><td>WMC</td><td>Waste Management Council</td></tr></tbody></table>
