Mudavadi: Jua Kali Sector Gains Ksh. 4.4B Boost from Affordable Housing Initiative

Prime Cabinet Secretary Musalia Mudavadi recently announced a significant financial boost to Kenya’s Jua Kali sector, thanks to the Affordable Housing Program (AHP). Speaking at the launch of the Affordable Housing and Urbanization Week at Mvindeni Grounds in Diani, Kwale County, Mudavadi highlighted the transformative impact of the program on the country’s economy and housing sector. Since its launch in 2022, the program has injected Ksh. 4.4 billion into the Jua Kali sector, a move that Mudavadi believes is vital for empowering local industries, creating jobs, and addressing Kenya’s housing deficit.

The Jua Kali Sector: Economic Empowerment and Job Creation

The Jua Kali sector is a cornerstone of Kenya’s informal economy, providing livelihoods for millions of Kenyans involved in small-scale production, particularly in the manufacturing of essential building components such as steel doors, windows, and other materials needed for housing projects. The infusion of Ksh. 4.4 billion from the Affordable Housing Program underscores the government’s recognition of the sector’s critical role in national development.

Mudavadi emphasized that the Affordable Housing Program is not just about providing shelter for Kenyans; it is also an economic lifeline for local industries. “The housing project is touching on many lives apart from providing residence for Kenyans. Already the Jua Kali sector has received over Sh4 billion through various purchases from those constructing houses,” he said.

By channeling funds directly into the Jua Kali sector, the program is not only addressing housing needs but also supporting the growth of micro, small, and medium-sized enterprises (MSMEs), which form the backbone of Kenya’s economy. The government’s investment in the sector is expected to catalyze further economic recovery, providing much-needed jobs and stimulating production in the local economy.

Tackling Kenya’s Housing Deficit: A Key Government Priority

Mudavadi reiterated the government’s commitment to tackling Kenya’s housing crisis, noting that the demand for affordable housing far exceeds current supply. The government estimates that approximately 250,000 housing units are needed annually to meet the growing demand, yet only about 50,000 units are being produced each year.

The affordable housing projects, which are part of the government’s broader economic transformation agenda, are seen as key to addressing this deficit. According to Mudavadi, over 124,000 affordable housing units are currently in various stages of completion, marking significant progress in the government’s housing initiative. “Our mission is not only to build houses but to uplift communities, create jobs, and establish the foundation for a prosperous future,” he said.

The AHP, launched in 2022 as a central pillar of President William Ruto’s bottom-up economic transformation agenda, aims to provide affordable housing for millions of Kenyans. In addition to directly benefiting the Jua Kali sector, the program is also expanding access to mortgages, allowing more Kenyans to own homes.

Expanding Mortgage Access and Addressing Urbanization Challenges

One of the key elements of the Affordable Housing Program is the expansion of mortgage access. The government aims to increase the number of mortgages from the current 30,000 to 1 million, with monthly payments starting as low as Ksh. 3,000. This initiative is designed to make homeownership accessible to a broader segment of the population, particularly low-income earners who have traditionally been excluded from the housing market.

Mudavadi acknowledged that the rapid pace of urbanization presents additional challenges for housing and infrastructure development. He noted that more than half of Kenya’s population is expected to live in urban areas by 2050, placing immense pressure on urban housing, services, and infrastructure.

To address these challenges, the government is rolling out the second phase of the Kenya Urban Support Program (KUSP II), which aims to strengthen urban institutions in 79 municipalities across 45 counties. This program will provide much-needed support to local governments as they manage the increasing demands of urbanization.

Climate Resilience and Sustainable Urban Development

Mudavadi also highlighted the government’s commitment to climate resilience, especially in the context of urbanization. As Kenya faces the growing impacts of climate change, the government is working to protect vulnerable urban communities through the Building Climate Resilience for the Urban Poor (BCRUP) Strategy. This initiative, launched by President William Ruto at the Africa Climate Summit, aims to ensure that urban development is sustainable and resilient in the face of climate-related challenges such as flooding, heatwaves, and other extreme weather events.

The integration of climate resilience into urban planning is a forward-looking approach that seeks to mitigate the impacts of climate change on the urban poor, who are often the most vulnerable to such shocks. By incorporating climate considerations into housing and infrastructure development, the government aims to create cities that are not only livable but also resilient to future climate risks.

The Role of the Boma Yangu Platform

To make the affordable housing units accessible to potential buyers, the government has launched the Boma Yangu platform, a digital portal available on the eCitizen platform. This platform allows Kenyans to register for affordable housing, track the progress of housing projects, and apply for available units. Mudavadi urged all stakeholders to work together in realizing the government’s vision of providing affordable housing for all Kenyans, emphasizing that the investment in housing is about securing the future of the country.

“The investment in affordable housing is about securing our future. By working together, we can ensure that every Kenyan has a home they can proudly call their own,” he said.

A National Milestone: The Affordable Housing and Urbanization Week

The launch of the Affordable Housing and Urbanization Week marks a significant milestone in the government’s efforts to address Kenya’s housing crisis. The week-long event, which will run until the Mashujaa Day celebrations, will showcase various housing projects and initiatives that are part of the Affordable Housing Program.

Mudavadi delivered President Ruto’s message during the launch, reiterating the government’s commitment to transforming Kenya’s housing landscape. The event was attended by key government officials, including Kwale Governor Fatmah Achani, Chair of the Council of Governors Ahmed Abdullahi, Principal Secretary for Housing Charles Hinga, Cabinet Secretary for Lands and Housing Alice Wahome, and UN-Habitat Executive Director Anaclaudia Rossbach. Several governors from across the country were also present, underscoring the national importance of the Affordable Housing Program.

Conclusion: A Vision for Housing and Economic Transformation

The Affordable Housing Program represents a bold vision for Kenya’s future, one that goes beyond providing shelter to citizens. By investing in the Jua Kali sector, expanding mortgage access, and addressing the challenges of rapid urbanization, the government is laying the groundwork for economic transformation and long-term prosperity.

The success of the program will depend on continued collaboration between government, the private sector, and local communities. As Mudavadi noted, the investment in affordable housing is about securing Kenya’s future—one where every Kenyan has access to safe, affordable, and sustainable housing.

As the Affordable Housing and Urbanization Week progresses, it serves as a reminder of the government’s commitment to addressing Kenya’s housing crisis and transforming the economy from the ground up.