Parliamentary scrutiny over housing sector spending took a tense turn as lawmakers challenged delays in payments, cuts to donor-supported projects and the growing backlog of unsettled bills across key government departments.
Appearing before the National Assembly Departmental Committee on Housing on Wednesday, Urban Planning and Public Works, Principal Secretary Charles Hinga defended the proposed 2026/27 budget, saying the Affordable Housing Programme was shifting into a phase where completed units would begin generating income to support further development.
He told MPs that major investments were still ongoing and that the programme was designed to become self-sustaining over time through returns from housing sales.
"Currently, Sh737 billion is tied to ongoing projects. And through the housing levy which is a catalyst we have been able to make great progress," PS Hinga stated, noting the responsibility to produce 200,000 units annually at an average cost of Sh2 million per unit.
He further explained that revenue from completed units would be channelled back into the programme, with a target of Sh100 billion expected in the next financial year.
MPs, however, raised concern over reductions in donor-backed programmes, questioning the logic behind cuts despite external funding commitments.
Focus shifted to the Kenya Urban Support Programme II and the Kenya Informal Settlement Improvement Project II, both of which recorded reduced allocations.
Kiminini MP Maurice Kakai questioned the adjustments, saying "When you get grant funding, why would it be deducted" while referring to the affected projects.
Budget figures presented to the committee indicated that KUSP II had been reduced by Sh500 million while the Kenya Informal Settlement Redevelopment Programme was cut by Sh400 million under ongoing rationalisation.
Lawmakers also raised concern over rising pending bills in both the Housing and Public Works departments.
As of December 2025, the Housing State Department reported Sh1.98 billion in unpaid obligations, while Public Works recorded Sh1.54 billion in outstanding commitments.
Committee members urged the National Treasury to fast-track clearance of verified claims to prevent legal disputes and project delays.
"If the Ministry has the capacity to pay, they should be allowed to do so immediately to avoid litigation," Committee Acting Chair Buuri MP Rindikiri Mugambi observed.
Treasury officials told MPs that payments would be processed once the Pending Bills Committee verifies long-standing claims.
The committee also questioned delays in payment of interns recruited under the State Department, linking the issue to a large recruitment exercise that attracted 49,000 applicants for 5,500 positions.
PS Hinga also pointed to challenges in the Electronic Government Procurement system, noting that only one project had been fully completed through the platform so far.
In a separate session, the State Department for Public Works came under pressure over its low budget absorption rate, which stood at 24 percent by mid-year.
MPs further demanded clearer updates on the Nairobi River Regeneration Programme and urged the Nairobi Rivers Commission to improve public communication on the multi-billion shilling project.