The government’s affordable housing program (AHP) has run into another hurdle after it emerged that the government lacks enough funds to run the program in this financial year and probably the next.
Treasury Cabinet secretary Ukur Yatani yesterday told the Parliamentary Transport Committee, chaired by Pokot South Member of Parliament David Pkosing that treasury has not released Ksh. 5 billion budgeted for the government’s affordable housing program in this financial year.
This comes as the government’s delivery gap widens with the 5-year target date drawing near. So far, only 228 units have been completed out of 1370 in the first phase.
Treasury has only been able to release Ksh. 1 billion to the program despite receiving a request to release the funds according to housing transport and infrastructure secretary James Macharia.
Yatani painted a grim picture of the situation saying, “We may not even be able to provide anything in the next financial year.”
“We had budgeted for the take-off of the project but we are unable to release funds because there is no money,” he said
The committee’s chair, Pkosing, had sought to know why Yatani assured the members of the committee that Treasury would pump funds into AHP, yet there was no action on the same.
Yatani also hinted that the Kenya Mortgage Refinance Company (KMRC) company will be the mainstay in ensuring the long-term success of the project.