Auditor Report Highlights Billions Missing in Affordable Housing Funds
Kenya’s Auditor General Nancy Gathungu has revealed that part of the Ksh 11.66 billion allocated to the Kenya Mortgage Refinance Company (KMRC) for the Affordable Housing Programme cannot be accounted for. The funds, disbursed under an international loan agreement signed in 2019 during former President Uhuru Kenyatta’s tenure, were part of a €219 million (Ksh 29.99 billion) loan from the International Bank for Reconstruction and Development (IBRD).
Missing Funds Uncovered
In her latest audit report presented to Parliament, Gathungu disclosed that by June 2024, KMRC had received Ksh 11.66 billion. However, there is no evidence of how the funds were allocated to the intended beneficiaries. Furthermore, KMRC’s financial records have not been audited as mandated by the Public Audit Act, 2015, making it impossible to verify expenditures.
The audit also raised concerns about Ksh 1.67 million spent on return air tickets for a benchmarking trip to Kuala Lumpur, Malaysia. The report cited a lack of supporting documents, participant lists, or proof of attendance for the trip.
KMRC’s Role and Controversies
KMRC, launched in 2018 as a public-private partnership under the Central Bank of Kenya (CBK), was tasked with providing long-term funding to mortgage lenders. The aim was to make housing loans accessible for Kenyans earning less than Ksh 150,000 per month. Loans were capped at Ksh 4 million in Nairobi, Kiambu, Machakos, and Kajiado counties, and Ksh 3 million in other regions.
The initiative was part of the Big Four Agenda, which aimed to construct 500,000 low-cost homes by 2022. Despite its ambitious goals, the programme has faced challenges, including accusations of mismanagement and slow progress.
Affordable Housing Under Scrutiny
President William Ruto, who inherited the programme in September 2022, signed the Affordable Housing Bill into law in March 2024. The legislation established the framework for collecting a housing levy to fund the project. So far, 1,189 affordable homes have been completed, with ongoing construction projects expected to deliver thousands of additional units.
Key Affordable Housing Statistics
- Completed Units: 1,189 homes in Buxton and Nakuru Bondeni.
- Ongoing Construction: 8,872 units, including projects in Pangani and Buxton Point.
- Upcoming Projects: 19,965 units in 38 locations nationwide.
- Private Sector Support: 6,813 units sponsored by developers in Nairobi, Mombasa, and Kilifi.
Public Outcry
The missing billions have sparked outrage, with citizens and stakeholders demanding accountability. Many are questioning whether the ambitious Affordable Housing Programme can deliver its promise to provide decent, affordable homes for millions of Kenyans, especially those in slums and informal settlements.
