The government has admitted that some affordable housing projects are being developed on land without complete ownership documents, raising concerns over the processing of title deeds for future homeowners.
Affordable Housing Board Chief Executive Officer Joe Mutugu confirmed the gaps while appearing before the National Assembly’s Special Funds Accounts Committee on Thursday to respond to audit queries in the Auditor-General’s report on the Affordable Housing Fund for the 2024/2025 financial year.
The committee, chaired by Fatuma Mohammed, questioned Mutugu on the ownership status of land where affordable housing projects had been implemented.
The CEO appeared alongside Principal Secretary in the State Department for Housing and Urban Development Charles Hinga.
According to the Auditor-General’s report, several projects had been established on community land or property held under customary arrangements. This could complicate the processing of sectional title deeds where original land ownership documents are unavailable.
The audit report indicated that 14 Affordable Housing Programme projects had title deeds, nine had letters of allotment, 23 had certificates of search, while two were on community land. A further 269 projects had no land documentation.
The report also noted that the Fund had not declared the value of land in its financial position because it had not purchased any land. Instead, the programme was constructing houses on land vested by national government entities and county governments.
In his response, Mutugu acknowledged that ownership documents were unavailable for some parcels of land being used for ongoing affordable housing projects.
He said the problem reflected long-standing gaps in the registration of public land in Kenya but maintained that the Affordable Housing Board was working to address the documentation issues.
Mutugu told the committee that the board had written to governors in counties where affordable housing projects had been developed or were under development on county government land.
He said the governors had engaged with the State Department for Housing and Urban Development and the Affordable Housing Board, with some signing resolutions to facilitate the preparation of ownership documents.
“A request has been made to all Governors where AHB has developed or is developing affordable housing projects on County Government land. The Governors have been in engagement with the State Department for Housing & Urban Development and AHB and have signed resolutions to facilitate production of ownership documents,” Mutugu said.
For land belonging to national government ministries, departments and agencies (MDAs), the CEO said the Cabinet had approved the vesting of 275 parcels in the Affordable Housing Board.
He added that the relevant government agencies had been directed to complete the necessary approvals and submit the required documentation.
During the meeting, committee chairperson Fatuma Mohammed also questioned why contractors working on affordable housing projects had such low profit margins that their businesses could struggle to remain operational.
She further sought clarification on whether Kenyans contributing to the housing levy were guaranteed allocation of houses under the programme.
In his response, PS Hinga explained that the housing levy was legally classified as a tax, although it had initially been intended to operate as a contribution.
“A tax works different in that doesn’t confer you a direct benefit but it gives you a valid and genuine expectation that you will get a house,” Hinga told the committee.
On contractors’ earnings, the PS said the programme deliberately capped profit margins at 15 per cent to protect its financial structure.
“On the profit margins for the contractors, it is that way by design. It is a safeguard to be able to protect the programme and it does not get to more than 15%,” he said.
Hinga also disclosed that Kenyans had so far contributed more than Sh200 billion to the housing programme, adding that the funds could be accounted for.
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