Governors seek 10pc quota and service funds in housing rollout

News · Tania Wanjiku · November 5, 2025
Governors seek 10pc quota and service funds in housing rollout
Council of Governors Chairperson and Wajir Governor Ahmed Abdullahi. PHOTO/CoG
In Summary

The push by governors adds a new layer to the national housing agenda, which is one of the key pillars of the current administration. They say the model, as it stands, puts counties at a disadvantage because they part with valuable land but do not get a clear return once the housing units are completed and handed over to private owners.

County governments have again placed the affordable housing plan under scrutiny, saying they cannot continue offering land for projects without receiving a defined benefit.

They want a guaranteed 10 per cent share of the homes built under the programme and financial support to handle roads, water, lighting and other services in the neighbourhoods where the houses are put up.

They also insist the projects must be taken through county development approval channels so that counties can exercise their legal mandate and collect revenue.

The push by governors adds a new layer to the national housing agenda, which is one of the key pillars of the current administration.

They say the model, as it stands, puts counties at a disadvantage because they part with valuable land but do not get a clear return once the housing units are completed and handed over to private owners.

The Council of Governors said that while counties have continued to respond to national calls to identify public parcels for construction, they still face the burden of maintaining sewer lines, roads and public spaces in those estates.

They said counties are left with the responsibility to support the neighbourhoods while the national side and private developers move on after completion.

In their report, governors noted that the affordable housing effort was set up to address the country’s housing demand and was designed to bring together national bodies, county governments and private builders. They said this cooperation must also reflect shared benefits and clear roles.

“Counties are increasingly being requested to identify and allocate public land for the development of affordable housing projects,” the council said.

They added, “Upon completion, the land and developments are often intended to be converted into private sectional units registered under the Sectional Properties Act, 2020, to allow individual ownership.”

The council said the shift from public land to private ownership should follow the law, including land and county statutes that safeguard public assets.

They explained that under the housing model, county land is first given to the Affordable Housing Board through a Head Lease, before being broken into separate leases for owners under the sectional law.

They noted this system gives counties the right to earn ground rent, a key source of county income, and must therefore be captured in county finance laws.

“The county government, as the lessor, remains entitled to annual ground rent payable by the lessee (AHB) and subsequently by the individual sectional title holders,” the governors said.

The leaders asked the national side to budget a grant to help counties maintain infrastructure around the estates and stressed that county revenue and planning roles must be respected for the project to work well across the country.

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