NATIONAL HOUSING POLICY - KENYA

TERM PAPER

INTRODUCTION

This National Housing Policy is intended to arrest the deteriorating

housing conditions countrywide and to bridge the shortfall in housing
stock arising from demand that far surpasses supply, particularly in
urban areas.
The shortage in housing is manifested in overcrowding, proliferation of
slum and informal settlements especially in peri-urban areas. In the
rural areas the shortage manifests itself in the poor quality of the
housing fabric and lack of basic services such as clean drinking water.
Housing is also an investment good contributing both directly and
indirectly towards poverty reduction through employment generation,

POLICY EVOLUTION

The first comprehensive Housing Policy for Kenya was developed in

1966/67 .At that time Kenya's population was just over 9 million people
growing at a rate of 3 percent per annum for the whole country and 5 to
6 percent per annum in the urban areas. The annual housing
requirements then were 7,600 and 38,000 new units in urban and rural
areas respectively. The policy directed the Government "to provide the
maximum number of people with adequate shelter and a healthy
environment at the lowest possible cost".
The policy advocated for slum clearance and encouraged mobilization
of resources for housing development through aided self-help and cooperative efforts. Emphasis was placed on enhanced co-ordination to
increase efficiency in programmes and projects preparation.

HOUSING PROBLEMS AND

CHALLENGES
The estimated current urban housing
needs are 150,000 units per year. This
level of production can be achieved if
the existing resources are fully utilised
by the private sector with the enabling
hand of the Government.
It is estimated that the current
production of new housing in urban
areas is only 20,000-30,000 units
annually, giving a shortfall of over
120,000 units per annum.
The review of the housing policy is
intended to provide a guide in this
direction as Kenya, along with other
members
of
the
international
community, implements the Habitat
Agenda and the National Plan of Action
on Shelter and Human Settlements to

THE POLICY AIMS AT:

Enabling the poor to access housing and basic services and

infrastructure necessary for a healthy living environment
especially in urban areas.
Encouraging integrated, participatory approaches to slum
upgrading, including income-generating activities that effectively
combat poverty.
Promoting and funding of research on the development of low
cost building materials and construction techniques
Harmonising existing laws governing urban development and
electric power to facilitate more cost effective housing
development
Facilitating increased investment by the formal and informal
private sector, in the production of housing for low and middleincome urban dwellers.

THE GOAL

The overall goal of this Housing Policy is to facilitate the provision of

adequate shelter and a healthy living environment at an affordable cost
to all socio-economic groups in Kenya in order to foster sustainable
human settlements. This will minimize the number of citizens living in
shelters that are below the habitable living conditions. It will also curtail
the mushrooming of slums and informal settlements especially in the
major towns.
OBJECTIVES
a) To facilitate progressive realisation of the right to adequate housing by
all

b) To promote the development of housing that is functional, healthy,

aesthetically pleasant and environmentally friendly

c) To earmark and set aside land for public housing development in

urban areas

d) To facilitate access to land and security of tenure for all socioeconomic groups

ELEMENTS OF THE HOUSING POLICY

POVERTY ALLEVIATION
POLICY
TARGETS

PUBLIC HOUSING
URBAN HOUSING
RURAL HOUSING
VULNERABLE
GROUPS

HOUSING
INPUTS

LAND USE PLANNING AND

MANAGEMENT
INFRASTRUCTURE
BUILDING MATERIALS AND
RESEARCH
FINANCIAL RESOURCES FOR
HOUSING.
MANAGEMENT
LEGISLATIVE AND INSTITUTIONAL
FRAMEWORK

POLICY TARGETS
Based on the 1999 national Population and Housing Census there are
about 3 million people in urban areas and about 6 million people in rural
areas in urgent need of proper housing.
Given the average household size of 4 persons from the census, there
are about 750,000 households in urban areas and 1,500,000 households
in the rural areas that need to be housed.
The Government will facilitate an annual output of 150,000 housing
units in urban areas and 300,000 units in rural areas in the next five
years in order to be able to meet that demand.
1 POVERTY ALLEVIATION
Poverty has been a major limiting factor in development. In rural areas,
the majority of the population is unable to meet their basic requirements.
It is estimated that over 50% of Kenyas urban population live in very
poor neighbourhoods and about 60% of these are estimated to be
absolutely poor.
The influx of rural youth to urban areas where there are limited
employment opportunities has compounded the level of urban poverty on
one hand, and rural poverty on the other. As such, rural areas are being
deprived of their active and more productive labour force.

2 PUBLIC HOUSING
Public housing refers to housing development undertaken by public
institutions and the Government. Most of the public houses are in poor
physical conditions arising from lack of regular maintenance. They are
normally few and thus benefit only a few people in comparison with the
people to be served.
3 URBAN HOUSING
The Government is committed to addressing this situation through the
following strategies:
a) Development of urban middle-cost and low-cost housing; and
b) Upgrading of slums and informal settlements.
c) Rental housing
Urban Middle-cost Housing:
Urban middle-cost housing is in this context, regarded as housing
accommodation comprising a minimum of three habitable rooms,
kitchen, bathroom and toilet, covering a minimum gross floor area of 60
square metres for each household.

Urban low-cost Housing

Urban low cost housing is in this context regarded as housing comprising
a minimum of two habitable rooms, cooking area and sanitary facilities,
covering a minimum gross floor area of 40 square metres for each
household.
Upgrading of Slums and Informal Settlements
Upgrading of slum areas and informal settlements will be given high
priority. It will be undertaken with minimal displacement to cater for
proper planning and provision of necessary infrastructure and related
services. Appropriate upgrading measures will be instituted for existing
slum areas taking into account key upgrading components that cover
security of land tenure, provision of basic infrastructural facilities and
services, improvement of housing structure and the socio-economic status
of the target community.
Rental Housing
The policy is to keep rent levels under review and to impose some
measure of control to prevent any abuses whilst ensuring that
capital investment in housing yields profitable returns.

4 RURAL HOUSING
Rural housing construction will be encouraged to adhere to some
minimum standards related to ventilation, lighting, sanitation and height
5 VULNERABLE GROUPS
The vulnerable groups cover the poor, women, children in difficult
circumstances, the handicapped, the elderly and the displaced persons.
The Government recognizes and appreciates the fact that housing
programmes are much more effective when they take into account the
different roles and needs of their targeted population consisting of men,
women and youth.

MAIN HOUSING INPUTS

1 LAND USE PLANNING AND MANAGEMENT
Issues:
Land is a scarce and valuable resource. Land and land related matters
including use, development and control are sensitive issues with deep
socio-economic and political impacts. Land holds a special and enviable
position of an invaluable economic asset associated with an intricate
chain of interests. Thus, a number of people having recognised the
special economic value in land engaged in public land grabbing for
speculative purposes.
Policy Statements:
Development control will be upheld and intensified to avoid illegal
developments and construction
2 INFRASTRUCTURE
Issues:
Infrastructural facilities therefore form a major and vital component of
shelter provision. Accessibility to adequate urban basic services will
greatly improve people's economic capacities, health and the quality of
life in general.
Policy Statements:
Develop
infrastructural
maintenance
guidelines
clearly
articulating various roles for developers, local authorities and

3 BUILDING MATERIALS AND RESEARCH

Issues:
Kenya is endowed with abundant natural resources that can meet the
demand for basic materials using available surplus labour in peri-urban
and rural areas. There are extensive deposits of limestone, gypsum, clay,
coral, forest and agricultural fibre and wastes that can increase the
supply of building materials and substitute current imports. A welldeveloped local building materials industry can provide such benefits as
improved skills, greater income generation and stimulation of other
sectors.
Policy Statements:
Promote the production of innovative building designs and traditional
architecture that are cost effective and compatible with the use
locally available and affordable materials will be promoted;
4 FINANCIAL RESOURCES FOR HOUSING
Issues:
Limited access to finance is a major limiting factor in housing
development. The sources of funds for shelter are few and the lending
institutions have not really reached some target groups.
Policy Statements:
The Government will harmonize the Banking Act, the Building Society
Act, the Insurance Act and the various Acts relating to land and housing

5 MANAGEMENT
ESTATE MANAGEMENT AND MAINTENANCE

Estate Management is a field of management which is concerned with the

ownership, management, valuation, disposal and development of urban
land and property.
DISASTER MANAGEMENT AND ENVIRONMENTAL IMPACT ASSESSMENT

Many Kenyans are exposed to a wide range of hazards in the natural or

man-induced environment, which adversely affect their lives and property.
The range of disasters include drought, desertification, soil erosion and
landslides, deforestation, epidemics (human and livestock)-especially HIVAIDS, refugee influx and internally displaced persons, and unplanned
urbanisation and settlements among others.
HUMAN RESOURCE DEVELOPMENT

There is insufficient capacity and institutional development that allows for

the devolution of decision making and resource allocation to those key
actors at the lowest administrative levels to ensure client-oriented,
demand based, timely and responsive delivery of housing facilitation
services.
MONITORING AND EVALUATION

The performance of the Housing sector has not been effectively monitored

6 LEGISLATIVE AND INSTITUTIONAL FRAMEWORK

LEGISLATIVE FRAMEWORK
Issues:
The successful implementation of this housing policy will depend on the
existence of a conducive legal framework and availability of adequate
resources and capacity at all levels of implementation.
Policy Statements:
The existing Housing Act will be renamed The National Housing
Corporation Act;
INSTITUTIONAL FRAMEWORK
Issues:
Successful implementation of this policy requires co-operation and coordination of all actors and stakeholders involved and interested in housing
development. The current institutional arrangement for housing planning,
development and management is fragmented, inconsistent and
characterised by overlapping of roles and lines of accountability.
Policy Statements:

The Government
The Government will provide the enabling hand in housing by forging
partnerships with the private sector, community and other actors at
different levels.
The Government, in collaboration with local authorities will be

In order to facilitate successful implementation, the main actors

in the implementation of this policy and their respective roles
will be as follows:
The Ministry in charge of Housing
Formulate and review the housing policy to cater for the diverse needs
and resource endowments of different regions of the country
Facilitate a systematic and appropriate increase in the national
allocation of the state budget to housing development
Initiate the establishment of a funding framework of housing
development
Local Authorities
Undertake land-use planning and administration, provision of
infrastructure and low-cost housing for sale or rent at economic rate
Set aside properly secured land bank for housing development
purpose

Financial Institutions
a) Develop a Secondary Mortgage Market;
b) Encourage investment in low cost housing;
c) Provide mortgage finance for housing development and house
purchase;
Co-operatives
Professionals
The Non-governmental Organisations (NGOs) and Community
Based Organisations (CBOs)
NGOs and CBOs can contribute to the development of housing through
informing and mobilizing communities among whom they work with a
view to improving their housing and living environment
International Agencies
The country has in the past benefited from international co-operation
in the development of housing
Research Institutions
Research is an important ingredient to housing and building sectors to
which it provides timely data to facilitate decision-making. Housing and
Building Research Institute (HABRI) of the University of Nairobi in
conjunction with the Ministry in charge of housing as well as other

CONCLUSION
This National Housing Policy addresses most of the pertinent Issues
relating to housing delivery in the country. It proposes measures that
will tackle housing problems in both the rural and urban areas; offers
special attention to vulnerable groups and provides measures towards
attaining a conducive environment for improved housing delivery.
It is indisputable that the Government alone cannot provide
adequate shelter to its needy citizens. Future projections on housing
needs indicate that this should be catered for by a proportionate
increase in investments in housing and infrastructure so as to meet
current housing requirements of 150,000 units in urban areas and
300,000 units in the rural areas per annum, respectively.

REFERENCE

Sessional paper No 3 of 2004 on National Housing Policy For

Kenya Ministry of housing Nairobi
Government of Kenya, 2008, Kenya Vision 2030- A Globally
Competitive and Prosperous Kenya