ELBURGON, Kenya – President William Ruto on Monday, October 27, 2025, handed over keys to 220 new housing units at the Boma Yangu Elburgon Estate in Nakuru County, marking a tangible delivery on his administration's flagship Affordable Housing Programme (AHP). The event, however, unfolds against a backdrop of persistent national debate and legal challenges over the controversial housing levy that underpins the project's financing.

The Elburgon estate, developed in partnership with Top Choice Surveillance Ltd, consists of 60 studio apartments, 20 one-bedroom units, 120 two-bedroom units, and 20 three-bedroom units. According to Housing Principal Secretary Charles Hinga, the project is designed to be a self-reliant neighbourhood, complete with green spaces, a borehole for water supply, and security infrastructure. Construction, which began in September 2023, reportedly created around 1,000 direct and indirect jobs for locals and engaged 'jua kali' artisans for steelworks, aligning with the government's goal of stimulating local economies.

A Pillar of the BETA Agenda

The AHP is a cornerstone of President Ruto’s Bottom-Up Economic Transformation Agenda (BETA), which aims to address Kenya's significant housing deficit. The government's stated goal is to construct 200,000 to 250,000 housing units annually to tackle a national deficit estimated at over two million homes, with a majority of urban dwellers residing in informal settlements. The programme is structured to provide social housing for those earning up to KSh 20,000 per month and affordable housing for those earning between KSh 20,000 and KSh 149,999.

Beneficiaries of the Elburgon project expressed optimism. James Munga, a new owner of a two-bedroom unit, praised the initiative for making homeownership a reality. “At first I was hesitant about applying, but when I saw the project coming up, I didn’t waste time,” he stated on Monday. Martha Maina, a public health assistant who acquired a studio, cited the rent-to-own model as a key motivator, noting it gives young Kenyans a chance to own homes early.

The Contentious Housing Levy

Despite such successes, the programme's funding mechanism, the mandatory housing levy, remains a point of contention. The Affordable Housing Act, 2024, established a 1.5% levy on the gross monthly salary of employees, matched by a 1.5% contribution from employers, to finance the construction. The policy has faced strong opposition and multiple legal challenges. Critics have argued it is an additional tax burden on already strained citizens, while its constitutionality has been repeatedly questioned. Although the High Court declared a previous version of the levy unconstitutional in November 2023 for being discriminatory, a revised Act was passed. In a significant ruling on Tuesday, October 22, 2024, a three-judge High Court bench dismissed six petitions challenging the new law, declaring the Affordable Housing Act constitutional and finding that there had been adequate public participation.

Cost, Application, and Affordability

For many Kenyans, the central question remains one of genuine affordability. To apply for a home, citizens aged 18 and over must register on the Boma Yangu online portal. Prices for units under the AHP vary by location and size. For instance, a separate AHP project in Bahati, Nakuru, listed studio apartments at KSh 640,000 and two-bedroom units from KSh 1.28 million. In contrast, units in Bondeni, Nakuru, were priced higher, with two-bedroom apartments at KSh 3.15 million. Applicants are typically required to raise a deposit, often around 10% of the unit's value, which they can accumulate through savings on the Boma Yangu platform. After allocation, which the government states is done via a fair, transparent lottery system, owners can pay the balance through a rent-to-own model or a mortgage. The government aims to increase the number of mortgages in the country to one million by offering lower interest rates through facilities like the Kenya Mortgage Refinance Company (KMRC).

Economic Impact and Future Outlook

The government champions the AHP not only as a housing solution but also as a significant economic driver. Each housing unit constructed is estimated to create between three to five direct jobs and up to eight indirect jobs, stimulating sectors from manufacturing and transport to local trade. The use of local artisans and materials, as seen in the Elburgon project, is intended to ensure that economic benefits are retained within communities. As the government continues to launch projects across the country, including other sites in Nakuru County, the long-term success of the AHP will be measured by its ability to deliver homes at scale while navigating public concerns over affordability and the financial sustainability of the levy. The handover in Elburgon provides a concrete example of the programme's potential, even as the national conversation about its methods and costs continues.