NEW DEVELOPMENTS

This page highlights latest legal and regulatory developments in Kenya’s affordable housing sector as of October 2025, reflecting updates since the last GitBook revision & subject to future updates.

Persons with Disabilities Act, 2025

The Persons with Disabilities Act, 2025 came into effect on 27^th May, 2025, repealing the 2003 Act and replacing it with a more comprehensive and enforceable framework for protecting the rights of persons with disabilities. Key aspects of the new law include mandatory employment quotas for persons with disabilities, tax incentives for employers who hire them and stronger legal protection against discrimination. The Act also restructures and empowers the National Council for Persons with Disabilities to monitor and enforce these rights.

In terms of the housing value chain, the Act Mandates that 5% of jobs in public institutions and large private companies be reserved for persons with disabilities. Further, the National Council for Persons with Disabilities shall consult with the Government in the provision of suitable and affordable housing for persons living with disability. Under Section 77, every government agency putting up residential and commercial buildings shall reserve at least five percent of the said residential and commercial buildings for acquisition by persons with disabilities and the terms and conditions of such acquisition to persons with disabilities shall include interest free and longer periods of repayment.

Affordable Housing Regulations, 2025

The Affordable Housing Regulations, 2025 were made pursuant to powers conferred on the Cabinet Secretary for Lands, Public Works, Housing and Urban Development under Section 59 of the Affordable Housing Act, No. 2 of 2024. They seek to operationalize the Affordable Housing Programme (AHP) under the national legal framework and are intended to provide legal clarity and institutional coherence in the implementation of affordable housing initiatives nationwide.

The Regulations introduce key reforms, notably reducing the mandatory housing deposit from 10% to 5% of the unit cost and establishing a structured support mechanism for individuals unable to meet the revised threshold. They further delineate the eligibility criteria, planning parameters, design standards, allocation procedures, financing structures, and maintenance obligations applicable to affordable housing developments across all 47 counties.

Civil Appeal No. E160 of 2025 Claire Kubochi Anami & Others suing as Officials of Rhapta Road Residents Association Vs. County Executive Committee Member, Built Environment & Urban Planning, Nairobi City County and 19 Others

This case marks a watershed moment in clarifying how constitutional principles, statutory planning instruments and environmental safeguards intersect in the regulation of urban development.

At its core, the dispute revolved around approvals for high-rise towers of up to 28 floors along Rhapta Road. Residents argued these approvals were unconstitutional, unlawful and environmentally unsustainable, while developers defended them as lawfully issued under Nairobi’s evolving policy framework. Accordingly, the Court was required to address the fundamental policy question of how urban growth should be regulated in circumstances where no gazetted zoning framework exists.

The Environment and Land Court (ELC)

Residents of Rhapta Road, through their association, challenged the County Executive Member for Built Environment and Urban Planning and Nairobi City County’s grant of development approvals to multiple private developers and the issuance of Environmental Impact Assessment (EIA) licences by NEMA. Their main concerns were:

a) The approvals were inconsistent with zoning restrictions under the 2004 Nairobi City Development Ordinances and Zones (2004 Zoning Guidelines).

b) The County had failed to implement and gazette updated plans as required by the Physical and Land Use Planning Act, 2019 (PLUPA).

c) The EIAs did not properly account for cumulative environmental and infrastructural impacts.

The ELC partially agreed, finding the approvals unlawful but stopping short of cancellation or demolition. Instead, it capped permissible building heights at 16 floors, pending County Assembly approval of the 2021 Nairobi City Development Control Policy.

Court of Appeal

Both sides appealed. The Residents argued that the ELC engaged in “judicial legislation” by inventing a 16-floor cap instead of annulling illegal approvals. The Developers cross-appealed, insisting that Rhapta Road fell under Zone 3C (permitting up to 20 floors) rather than Zone 4 as the ELC had ruled. On their part, the Respondents (County & NEMA) defended their reliance on the 2021 Policy as the operative framework, despite its lack of formal gazettement.

The Court of Appeal distilled the controversy into four questions and answered them as follows:

a) The legal status of the 2004 Zoning Guidelines, the Nairobi Integrated Urban Development Master Plan (NIUPLAN) of 2016 and the Nairobi City County Development Control Policy of 2021:

The 2004 Zoning Guidelines were declared obsolete under the devolved framework and PLUPA, 2019. The NIUPLAN 2016 was a valid, strategic, county-wide plan, but not detailed enough to regulate parcel-specific zoning. Finally, the 2021 Development Control Policy was legitimately used as an administrative guide but lacked binding legal status without Assembly approval and gazettement. The Court held that while governance cannot operate in a vacuum, only properly gazetted instruments can carry binding force.

b) The correct zoning classification of Rhapta Road:

The Court corrected the ELC’s misclassification. Rhapta Road was confirmed as part of Zone 3C, permitting up to 20 floors, not 16. The trial judge erred by relying on Google Maps instead of technical evidence. This adjustment validated many developers’ approvals but underscored the urgent need for a legally enforceable zoning plan.

c) The validity of the contested EIA licences:

The Court rejected the residents’ challenge to EIA licences, finding no proof of illegality. It emphasized that grievances about EIAs belong before the National Environment Tribunal, not the ELC, unless broader constitutional violations are implicated.

d) The appropriate remedies, including whether structural interdicts were justified:

Recognizing Nairobi’s planning paralysis, the Court ordered:

Within 3 months: Nairobi City County must file with the Court a progress report on steps towards lawful zoning policies.

Within 6 months: Nairobi City County must finalise and approve through the County Assembly and gazette comprehensive zoning and development control plans for the whole city, including Rhapta Road corridor and other affected high-density zones, in conformity with PLUPA, 2019. This remedy aligns with global best practices, ensuring compliance while respecting the separation of powers. The judgment compels Nairobi County to transition from ad-hoc discretionary approvals to a legally sound, participatory, and gazetted policy framework.

Presidential Assent to Some Relevant Bills

National Land Commission (Amendment) Bill, 2023

On October 15, 2025, President Ruto assented to the National Land Commission (Amendment) Bill, 2023, turning it into law. This amendment restores the NLC’s authority to review historical grants and allocations of public land, with a five-year window targeting dispositions made before August 27, 2010. All determinations are to be published in the Kenya Gazette and may be registered in the High Court. The law includes safeguards: the historical claims review mandate will automatically lapse after five years unless Parliament extends it.

The Bill was previously returned to Parliament under Article 115 for reconsideration due to presidential reservations on certain clauses, but the final version substantially addressed them. It is now expected to influence land dispute resolution, especially in regions with long-standing claims over public land.

Land (Amendment) Bill, 2022 (now Act)

Also assented to on October 15, 2025, the Land (Amendment) Bill, 2022, modifies land administration, particularly for public lands. The new law mandates that all public land allocated to public bodies or designated for infrastructure (e.g., schools, hospitals) be registered and gazetted by the Chief Land Registrar, aiming to deter land grabbing and unauthorised allocations. This change is seen by proponents as a significant step toward strengthening transparency and guarding public interest in land governance.