NAIROBI, Kenya - President William Ruto announced on Thursday, November 20, 2025, that his landmark Affordable Housing Programme (AHP) is projected to create 572,000 new jobs in the next year, bringing total employment from the initiative to one million. Speaking during his State of the Nation address at a joint session of Parliament, the President positioned the housing plan as a central pillar of his Bottom-Up Economic Transformation Agenda (BETA), designed to empower low-income earners and stimulate local economies.

According to the Head of State, the program has already generated 428,000 jobs for a wide range of professionals, including architects, engineers, artisans, and transport operators. He also highlighted the significant involvement of Micro, Small, and Medium Enterprises (MSMEs) in supplying materials and services. “Three years ago, when we said we would deliver affordable housing, the cynics dismissed it as a fantasy... Today, those doubts have given way to a very different question from Kenyans everywhere: How do I get one of those units?” President Ruto told lawmakers.

The President reported that 230,000 affordable homes are currently under construction nationwide, which he described as the most extensive housing rollout in Kenya’s history. However, this figure appears to conflict with recent data from government bodies. A report from the Affordable Housing Board cited by multiple sources indicated that as of June 2025, only 1,795 units had been completed and were ready for occupation. Similarly, in early November 2025, Housing Principal Secretary Charles Hinga stated that only 3,171 units had been completed since the housing levy was introduced. These discrepancies underscore a significant gap between the administration's pronouncements and the independently verified output of the program.

Student Housing and Broader Economic Impact

A key component of the AHP is addressing the acute shortage of student accommodation. President Ruto announced that 178,000 beds for universities, Technical and Vocational Education and Training (TVET) institutions, and Kenya Medical Training Colleges (KMTCs) have been packaged, with 74,000 already under construction. This initiative aims to formalize student housing, a sector where demand has long outstripped supply.

The administration frames the AHP not merely as a construction project but as a comprehensive economic engine. Beyond housing, the plan includes the construction of 276 new markets, with another 175 in the pipeline, to support traders and ensure new settlements have commercial infrastructure. The government also points to the Nairobi River Regeneration Programme, which has employed 44,000 young people in environmental restoration efforts linked to future housing development.

Funding for the ambitious project is increasingly sourced locally, a policy shift President Ruto emphasized in his address. He stated that Kenya's development must be powered by its own revenues to avoid dependence on foreign debt, which currently exceeds Sh11 trillion. The housing program is primarily funded by a contentious 1.5% levy on the gross monthly salaries of all formally employed Kenyans, matched by their employers. As of June 2025, the Kenya Revenue Authority (KRA) had collected Sh73.2 billion from this levy, surpassing its target.

Challenges and Independent Scrutiny

Despite the optimistic projections, the AHP faces considerable scrutiny. The figures on job creation have been inconsistent over the past year. In September 2025, the Ministry of Housing reported 330,000 jobs created since 2022. President Ruto himself has cited varying figures, from 164,000 in November 2024 to 320,000 in August 2025, leading to public confusion. Data from the Kenya National Bureau of Statistics (KNBS) also suggests a much slower rate of job growth in the construction sector than claimed by the administration.

Critics argue the pace of construction is too slow to meet the annual target of 200,000 units. The World Bank has noted Kenya's housing deficit exceeds two million units, with annual demand growing by about 250,000 households against a supply of less than 50,000. While the World Bank has committed significant funding to support affordable housing finance in Kenya, it has also recommended exempting low-income earners from the housing levy to avoid reducing formal employment.

The program has also faced legal challenges and public skepticism regarding its financing model and transparency. With the high cost of living remaining a primary concern for many Kenyans, the tangible delivery of affordable homes and verifiable job creation will be critical tests for the administration's flagship policy. FURTHER INVESTIGATION REQUIRED.