Government triples police and prisons housing budget to Sh3.5 billion

The government has allocated Sh3.5 billion in the 2025/26 financial year budget for the construction of housing units for the National Police Service and Kenya Prisons, more than three times the Sh1 billion provided in the 2024/25 fiscal year.

In addition, Sh454 million will support the construction of county headquarters.

The housing, urban development, and public works sub-sector has received a substantial budget increase, with Treasury Cabinet Secretary John Mbadi allocating Sh128.3 billion for 2025/26, up from Sh92.1 billion in the previous financial year.

Of the total allocation, Sh64.5 billion has been set aside specifically for the construction of affordable housing units, nearly double the Sh32.5 billion allocated in the 2024/25 budget.

Other significant allocations include Sh13.4 billion for the Kenya Urban Programme (KenUP), Sh10.5 billion for social housing, and Sh16.5 billion for social and physical infrastructure.

An additional Sh7.2 billion will fund the second phase of the Kenya Informal Settlement Improvement Project. A further Sh500 million has been allocated to build climate resilience for the urban poor, and Sh184 million will go towards constructing footbridges.

Speaking in Parliament, CS Mbadi reaffirmed the government’s commitment to expanding access to safe, decent, and affordable homes while driving job creation and economic growth.

He revealed that, since the launch of the programme in September 2022, more than 2,300 affordable housing units have been completed across four counties.

“Another 11,000 units are in the last stages of completion. The units have been advertised for sale to the public through the Boma Yangu platform,” said CS Mbadi during the budget presentation.

“In addition, there are 148,465 units under active construction across the remaining 43 counties.”

To ensure safety and quality within the building industry, Sh2.6 billion has also been allocated for the regulation and development of the construction sector.

Mbadi emphasised the importance of upholding building standards to prevent tragedies linked to substandard construction.

“These investments are not just about housing, they are about dignity, safety, employment, and sustainable urban development,” he said.

“Mr Speaker, these efforts have created over 250,000 direct and indirect jobs for Kenyans.”

In April 2025, the government released nearly 5,000 affordable housing units to the public.

Boma Yangu recorded a surge in activity following the announcement.

According to the Ministry of Housing, more than 500,000 Kenyans had expressed interest in the first phase of the project.

The units were priced at Sh640,000 for a studio, Sh960,000 for a one-bedroom, and Sh1,280,000 for a two-bedroom apartment.

Alice Wahome, Cabinet Secretary for Lands, Public Works, Housing and Urban Development, reported that at least 140,000 affordable houses had been built.

The government has set an annual target of 200,000 units, aiming for a total of one million over the next five years.

The units are tailored for low-income earners, including mama mboga (small-scale vegetable vendors) and boda boda operators, who do not require payslips to own a home.

The payment plan allows Kenyans to acquire their chosen units through a rent-to-own arrangement, with monthly payments ranging from Sh3,000 to Sh7,000 for up to 25 years.

The enhanced funding reflects the government’s determination to address Kenya’s housing deficit while positioning the sector as a key driver of inclusive economic growth under the Bottom-Up Economic Transformation.