Members of Parliament have blocked a Treasury proposal aimed at allowing owners of state-subsidized affordable homes to sell their units without restrictions on timing or price. The National Assembly Finance and Planning Committee, in its report on the Finance Bill, 2024, emphasized that lifting these controls could lead to the misuse and exploitation of the affordable housing scheme.
Public hearings on the proposed law revealed strong opposition from a majority of Kenyans, the committee noted. The Treasury had suggested eliminating the requirement for homeowners to obtain approval from the Affordable Housing Board before selling their units.
The committee’s recommendation to maintain the existing controls is driven by concerns that removing them could undermine the scheme’s objectives. The Finance Bill proposed amending section 54 of the Affordable Housing Act, 2024, to remove sale restrictions on affordable housing units. However, many Kenyans fear that repealing this section could lead to speculative purchases by wealthy and well-connected individuals, thereby excluding the intended primary beneficiaries of the program.
During public participation, most petitioners suggested that the government should set a minimum number of years before the houses can be resold by their initial owners. This measure, they argued, would prevent speculative buying and ensure that affordable housing remains accessible to those who need it most. Some noted that allowing these units to be sold on the open market could lead to price increases, further exacerbating the housing crisis.
If MPs adopt the committee’s proposal, it would halt the Treasury’s plan, thereby preserving the integrity of the affordable housing scheme. The scheme aims to provide affordable housing to low and middle-income Kenyans, and any changes that could potentially allow for the exploitation of this initiative by unqualified individuals must be carefully scrutinized.
