The National Assembly Departmental Committee on Lands has begun reviewing proposed amendments to the Land Act that could significantly reduce the time lenders take to recover loans secured through Kenya's affordable housing programme, with lawmakers weighing the need to protect homeowners while supporting investment in the housing sector.
The proposals are contained in Clauses 14 and 15 of the Business Laws (Amendment) Bill, Senate Bill No. 51 of 2024, which seeks to improve the country's business environment. The Bill was passed by the Senate without amendments and is now before the National Assembly for consideration.
If approved, the amendments would reduce the period before a lender can begin enforcing a loan secured by affordable housing property from 90 days to 45 days. The notice period before a lender exercises the statutory power of sale would also be cut from 40 days to 20 days.
The proposed changes would apply only to affordable housing properties, with the current timelines remaining in place for all other categories of land.
Speaking during the Committee's deliberations, Chairperson, North Mugirango MP Joash Nyamoko said lawmakers must carefully assess whether the proposed reforms achieve a fair balance between encouraging investment in affordable housing and safeguarding the rights of borrowers.
"Our duty is to ensure that any amendments to the Land Act promote investment while safeguarding the constitutional rights of Kenyans. We must interrogate whether the proposed timelines are fair, practical and in the public interest," Nyamoko said.
Supporters of the amendments argue that shortening the recovery process would reduce lending risks, strengthen investor confidence and encourage financial institutions to increase financing for affordable housing projects. They believe the changes could help accelerate housing development and support the government's affordable housing agenda.
However, several members of the Committee questioned whether the shorter timelines could leave homeowners with insufficient time to recover from temporary financial difficulties before losing their properties.
Kirinyaga Central MP Joseph Gitari sought clarification on whether the proposed timelines would adequately protect borrowers facing short-term financial hardship.
"Will reducing these statutory timelines provide sufficient protection to vulnerable borrowers who may experience temporary financial hardship?" Gitari asked.
Kilome MP Thaddeus Nzambia also raised concerns that the changes could discourage potential homeowners if affordable housing mortgages are viewed as carrying a higher risk of foreclosure.
Responding to the concerns, Nyamoko said the Committee would consider views from all interested parties before reaching a final position on the Bill.
"We intend to hear from all affected parties, including lenders, housing developers, legal experts and consumer representatives, before presenting our report to the Departmental Committee on Trade, Industry and Cooperatives," he said.
The Committee is expected to submit its findings in line with Standing Order 127 before the Departmental Committee on Trade, Industry and Cooperatives prepares its report for debate in the House by August 13, 2026.
However, lawmakers observed that the available time for reviewing the proposals is limited and indicated they may seek an extension to allow for broader stakeholder engagement.
The Committee's recommendations are expected to shape how lenders recover loans under the Affordable Housing Programme and determine whether the proposed legal changes strike an appropriate balance between faster loan recovery and protecting homeowners from premature foreclosure.