• New 2,000-unit housing project launched in Busia County

• Part of broader effort to close Kenya’s housing gap

• Program also aims to boost jobs and local economic activity

Kenyan President William Ruto has launched a new affordable housing project in western Kenya, as part of a broader push to address the country’s housing shortage.

The Nasewa housing development, located in Matayos in Busia County, is valued at 5.5 billion Kenyan shillings, or about $42.5 million. The project will deliver 2,000 housing units aimed at improving access to decent and affordable homes for Kenyan households.

Launched the construction of the KSh5.5 billion Nasewa Affordable Housing Project. The 2,000-unit development will complement the Nasewa County Aggregation and Industrial Park, creating employment opportunities for our youth. pic.twitter.com/9SUnrMBj2L

— William Samoei Ruto, PhD (@WilliamsRuto) March 16, 2026

It is part of the government’s national affordable housing program, which seeks to reduce the housing deficit while expanding access to lower-cost housing. Beyond providing homes, the initiative is also expected to create jobs, particularly for young people, and support local economic activity.

The new residential complex will complement the Nasewa industrial and aggregation park, helping strengthen the area’s economic ecosystem and support the development of productive activities.

A widening housing gap

Affordable housing is a central pillar of Kenya’s economic transformation agenda. The country faces an estimated annual housing deficit of about 200,000 units, with demand reaching roughly 250,000 units per year, compared to just 50,000 units built—mostly in the high-end segment—according to government data.

At the same time, housing-related costs continue to rise. Prices for housing, water, electricity, gas, and other fuels increased by 1.8% between February 2025 and February 2026, according to the Kenya National Bureau of Statistics (KNBS).

To address the gap, the government has introduced a series of reforms, including the 2024 Affordable Housing Act, which established a dedicated fund to finance and develop housing projects. Authorities are also working to expand access to mortgage financing, with a goal of increasing the number of home loans from about 27,800 to 1 million.

The Nasewa project launch is part of a five-day development tour by President Ruto across western Kenya. The trip also includes visits to Kakamega and Vihiga counties to review ongoing public projects.

During the tour, Ruto also launched several infrastructure initiatives, including the construction of a modern market in Budalangi valued at 130 million Kenyan shillings. The facility is expected to provide traders—especially women and youth—with a safer and better-equipped space for their activities.

Charlène N’dimon