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Real Estate / News / Analytics 04.06.2026

Affordable Housing Program in Kenya Leads to Mass Evictions

Affordable Housing Program in Kenya Leads to Mass Evictions

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The Kenyan government has launched a large-scale housing reform aimed at building hundreds of thousands of new apartments every year. In practice, the program has already led to the demolition of entire neighborhoods in Nairobi and mass evictions, with residents offered no alternative accommodation. The project has triggered protests and legal challenges, according to Bloomberg.

How the Housing Reform Is Being Implemented in Kenya

Kenya’s affordable housing program began in 2017 as an attempt to address a chronic housing shortage in the country. The initiative gained significant momentum and scale under President William Ruto. Old low-rise neighborhoods, which authorities consider inefficient in terms of population density, are being demolished and replaced with modern residential complexes. These new developments are intended for sale to citizens at prices linked to income levels, including relatively affordable options with installment payment plans.

The program aims to build around 200,000 housing units per year nationwide. The Ministry of Housing has stated that the project will create 1 million jobs and has also promised public consultations before demolitions. According to the ministry, construction is currently underway on 273,000 housing units.

Funding is partially provided through a special housing levy. In 2024, an additional tax of 1.5% on employees’ income was introduced, matched by employer contributions. Over the year, this mechanism generated about $563 million and became one of the sources of public discontent.

Authorities present the initiative as the largest attempt to address Kenya’s housing crisis since independence in 1963. However, no temporary housing is provided for those evicted, and far from everyone will be able to access the new units.

How Evictions Have Changed the Lives of Nairobi Residents

Renters Left Homeless

Forty-year-old Peter Shiundu is among thousands of Kenyans evicted under the program. Until November, he was renting a room in one of Nairobi’s oldest neighborhoods, Old Makongeni, but after the bulldozers arrived he was left without a roof over his head. He now lives in a makeshift shelter made of corrugated iron sheets and survives on casual work.

Before demolition, registered property owners received compensation of 150,000 Kenyan shillings (about $1,160). Tenants received nothing. After the demolitions, no one was provided with temporary accommodation, including some owners. Residents of the destroyed neighborhoods are uncertain whether they will ever be able to return to the new developments built on the same land. Only ruins remain in these areas.

Demolitions in Mariguini

The government does not disclose the total number of people displaced, but media reports in January estimated that around 5,000 families in Nairobi’s Mariguini slum lost their homes due to the Affordable Housing Programme.

Authorities have begun distributing relocation assistance of 30,000 Kenyan shillings ($230) to some affected residents. However, many say the amount is insufficient. Demolitions began despite a court order requiring compensation issues to be resolved beforehand.

The site is planned for redevelopment with buildings of up to 10 floors, totaling around 2,600 housing units. The project includes one-, two-, and three-bedroom apartments, as well as social infrastructure such as nursery schools, a primary school, and a community hall. The area has long been included in Kenya’s slum upgrading program.

Local community representatives had previously submitted demands, including a 30-year rent-to-own scheme and a 40-month grace period to save for down payments. Many families are now living in tents near the sites where their homes once stood.

Why the Reform Was Introduced and Early Results

Kenya’s affordable housing program is grounded in a clear need. The country requires around 250,000 new homes annually. However, implementation has been uneven. In areas where initial projects have already been completed, including Mukuru in Nairobi, many displaced residents have not benefited because the units are sold at income-linked prices and remain accessible only to a limited group of buyers. This has fueled protests and renewed criticism of the reform.

At the same time, new developments offer improved infrastructure, including water supply, sanitation, and basic services that were absent in older low-rise neighborhoods. For some new residents, this remains a key argument in favor of the program despite broader social tensions.

Representatives of the Kenya Alliance of Resident Associations emphasized that the issue is not only about scale but also about implementation. Its CEO, Henry Ochieng, noted that high-density housing is necessary, but stressed that protection of residents’ rights through consultation, compensation, and organized resettlement remains essential.

Christine Muchiri, chair of the town planners’ section at the Architectural Association of Kenya, highlighted concerns over transparency and structural imbalance in new developments. She noted that a significant share of units targets higher-income segments, limiting access for lower-income groups.

Conclusion

Analysts at International Investment note that Kenya’s housing reform is increasingly moving beyond a purely urban development agenda and becoming a broader debate about fairness and access to basic living conditions. Amid a severe housing shortage, authorities are pursuing rapid construction and densification, but the social costs of this approach are becoming increasingly visible.

The gap between stated goals and lived reality is deepening mistrust. Some residents lose their homes and familiar environment, others face limited access to new units, and many are effectively excluded from allocation. As a result, the idea of affordable housing is increasingly perceived as a system in which benefits are unevenly distributed.