If you’d rather live in the village than the city, you could now access up to Ksh 4 million to build your own affordable home.
The little-known provision in Kenya’s housing law allows citizens to access affordable housing funds to build in rural areas.
The Affordable Housing Act, Cap 117A, provides for rural affordable housing units, enabling eligible Kenyans to secure a government-backed loan of up to Ksh 4 million to construct a house on their own land.
The provision under Section 2 of the law falls within four categories of affordable housing.
It is also worth noting that affordable housing is divided into four categories: social housing units, affordable housing units, affordable middle-class housing units, and rural affordable housing units.
Many Kenyans mistakenly believe the program only caters to apartment-style units in towns. Yet the law also allows individuals to build on ancestral or privately owned rural land.
The Act was approved by the National Assembly under the Affordable Housing Regulations in August 2025, fully operationalising the framework and allowing contributors to access up to Ksh 4 million for building homes on their own land.
The decision was a direct response to public feedback from Kenyans who wanted to use their housing levy contributions for rural development rather than only purchasing pre-built units in urban government projects.
Who qualifies
To be eligible for the rural housing loan, a person must be a Kenyan citizen aged 18 or over and must not have been allocated any other unit under the affordable housing programme. They must also meet the criteria set out in the Act.
Key requirements to access the fund
Registration: Enrol on the Boma Yangu portal via USSD code *832# or the official website.
Voluntary savings: Maintain an active voluntary savings account with the fund to improve eligibility.
Land ownership: Provide a valid title deed in your name and an official land search document.
Documentation: Obtain a development permit from the county lands office and a priced Bill of Quantities (BQ) prepared by a registered quantity surveyor.
Repayment capacity: The board will assess your ability to repay the loan before approval.
Insurance: Secure a life insurance policy covering the loan in case of death.
Other mandatory documents include a copy of the title deed, official land search, declaration of no existing loan on the property, proof of required deposit as prescribed by the Cabinet Secretary, and identification documents.
Once the application is submitted, the law requires funds to be allocated within 90 days.
After approval, applicants must take an insurance policy tied to the loan.
In the event of death, the insurance takes over repayment, ensuring the borrower’s family is not burdened with the debt.
However, beneficiaries are prohibited from transferring or selling the house until the loan is fully paid.
If a beneficiary struggles to repay, the law allows them to petition the housing board for consideration and may be allowed to downgrade to a smaller, more affordable housing option instead of defaulting.
For repayment, the interest rate depends on monthly income:
Below Ksh 20,000 → 3%
Up to Ksh 149,000 → 6%
Above that threshold → 9%
This clarification sheds light on a little-publicised aspect of the housing law that could benefit thousands of Kenyans with land in rural areas who may have assumed the programme was limited to urban housing projects.
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