Nairobi — President William Ruto has announced a new government initiative aimed at making homeownership more accessible by offering affordable housing loans of up to Sh5 million.

Speaking during Madaraka Day celebrations in Homa bay President Ruto stated that the loan facility is part of the government's broader affordable housing strategy, and is designed to benefit contributors to the Housing Levy.

"In recognition and appreciation of the sacrifice made by patriotic Kenyans through their contributions to the Housing Levy, I am pleased to announce today that we shall be proposing to Parliament a reform to the law that will allow any contributor to access an affordable home loan of up to Sh5 million at a single-digit interest rate," Ruto said.

He clarified that the loan would be available not only for government-built houses but for any housing unit in the market, offering Kenyans more flexibility and choice in their path to homeownership.

Additionally, the proposed legal reform would enable contributors to use the funds to offset existing mortgages.

President Ruto emphasized that every shilling contributed to the Housing Levy would directly benefit contributors whether through access to affordable homes, subsidized loan terms, or mortgage relief.

The government says it is keen on its target of constructing 150,000 housing units nationwide.

So far, 11,000 units have been completed, according to official figures.