Government Raises Affordable Housing Prices by Up to Ksh600,000

The cost of purchasing a home under Kenya’s Affordable Housing Programme has risen, with the government introducing new prices that increase the cost of some units by as much as Ksh600,000.

The State Department for Housing said the revised rates took effect on October 1, 2026, and apply to applications made from that date. The adjustment covers both Affordable Housing and Market Housing units across government housing projects.

Under the new structure, prices for Affordable Housing units have risen by 20 per cent, while Market Housing units have increased by 10 per cent. The changes represent a significant shift for prospective buyers, particularly households that had been planning their finances around the earlier prices.

The largest increase among the Affordable Housing categories affects two-bedroom apartments. Their price has moved from Ksh3 million to Ksh3.6 million, adding Ksh600,000 to the purchase cost.

Studio apartments have risen from Ksh1.5 million to Ksh1.8 million, an increase of Ksh300,000. The price of a one-bedroom unit has similarly climbed from Ksh2 million to Ksh2.4 million, putting an additional Ksh400,000 on the cost of the property.

Market Housing units have also been adjusted upwards. A two-bedroom unit, previously priced at Ksh3.6 million, now costs Ksh3.96 million, while the price of a three-bedroom unit has increased from Ksh4.8 million to Ksh5.28 million.

The State Department said the new rates are limited to fresh applications, meaning applicants who had already entered the programme under the previous pricing arrangements will retain those prices. This distinction is likely to be important for households that had already committed themselves to the purchase process before the revision came into force.

The government had given prospective buyers advance notice of the impending changes. On September 15, Boma Yangu advised Kenyans who intended to purchase the units to submit their applications under the existing prices before the new rates came into effect.

The programme remains structured around income bands, with the government offering different categories of housing depending on applicants’ earnings. Social housing is intended for Kenyans earning up to Ksh19,999 a month, while the affordable housing category covers monthly incomes ranging from Ksh20,000 to Ksh149,999.

Those earning at least Ksh150,000 a month fall within the affordable middle-class segment, where the available units and pricing are designed around higher-income households and varying accommodation requirements. The price revision could have wider implications for the government's effort to expand access to home ownership. Although the programme continues to offer properties at prices below many comparable private-market homes, the higher entry costs could require prospective buyers to reassess their savings, mortgage or financing arrangements.For households already struggling to accumulate deposits or meet monthly repayments, the additional hundreds of thousands of shillings could materially alter the affordability equation. At the same time, the government’s decision to protect existing applicants from the increase provides some certainty to buyers who had already entered the programme.

Kenyans seeking to make new applications can access Boma Yangu through eCitizen, register through the Boma Yangu platform or use the *832# USSD service.

The revised prices now form the basis on which new applicants will enter the Affordable Housing Programme, marking another change in the government's implementation of its flagship housing initiative.