President William Ruto's Affordable Housing Project (AHP) has resulted in growth in the construction sector in the country according to the 2024 Economic Survey report from the Kenya National Bureau of Statistics (KNBS).
According to the report released on Monday, May 20, the Affordable Housing Project contributed to an increase in the total number of residential houses built in 2023 in Kenya.
These houses are expected to host thousands of Kenyans and reduce the number of slums in the country.
Through the State Department for Housing and Urban Development (SDHUD) and the National Housing Corporation, the government has constructed 3,521 residential buildings in 2023 a significant increase from 1,390 units constructed in 2022.
KNBS partly attributes this increase to the Affordable Housing Project which is enshrined in President Ruto's Bottom-up Economic Transformation Agenda (BETA).
KNBS revealed that in total the buildings constructed in the country are valued at Ksh12.7 billion; Houses under the State Department for Housing and Urban Development (SDHU) were valued at Ksh11 billion while those under the National Housing Corporation were valued at Ksh1.7 billion.
"The SDHUD completed 3,357 residential housing units in 2023. As a result, the value of completed residential housing units increased from Ksh1.761 billion in 2022 to Ksh11 billion in 2023," reads part of the report.
Additionally, the Affordable Housing Project drove up the value of building plans approved by Nairobi City County from Ksh162.5 billion in 2022 to Ksh220 billion in 2023.
"Employment level in construction in the public sector rose by 2.1 per cent from 9,500 in 2022 to 9,700 persons in 2023 while employment level in construction in the private sector rose by 1.8 per cent to 226,300 persons in 2023," reads part of the report.
Per the report, the projects have also resulted in growth in the construction sector which has hired both unskilled, semi-skilled and skilled Kenyans. KNBS reveals that the sector has witnessed notable milestones in the year under review.
Another impact of the project has helped create more jobs in the public sector. The increase in jobs has also been seen in the private sector during the period under review.
This was one of the aspects President Ruto used to sell this Affordable Housing Project agenda. Ruto revealed that the project would create 500,000 direct and indirect jobs by 2027.
Despite the persistent opposition, the government implemented the Affordable Housing Act which mandates all Kenyans to remit 1.5 per cent of their income towards the project as housing levy.
While signing the act into law, the Head of State emphasised that affordable houses will ensure all Kenyans live in a dignified manner.
