Kenya’s Housing Sector Revives as Affordable Projects Gain Traction

Kenya’s construction sector is showing signs of recovery, driven by renewed interest in affordable housing projects under the Bottom-Up Economic Transformation Agenda (BETA). In Q1 2024, housing starts rose by 17%, with major activity in Nairobi, Kisumu, and Nakuru. The government’s Ksh30 billion housing fund and partnerships with private developers like Acorn and Hass Consult have unlocked over 10,000 units. Mortgage rates dipped to 12.5%, boosting middle-income uptake. However, land titling delays and utility connection bottlenecks persist. The National Housing Corporation reported a 22% increase in applications for its low-cost schemes. Analysts project the sector—which contributes 4.2% to GDP—could grow by 6% in 2024 if regulatory reforms accelerate.