The intended beneficiaries of the government's affordable housing program, low and middle-income earners, might be left out in the cold, warns the Parliamentary Budget Office (PBO).

They found that over 70 per cent of the targeted demographic may not reap the program's benefits due to a surprising allocation discrepancy.

A closer look reveals that 36 per cent of the program's funds are earmarked for "institutional housing programs and projects," which cater to individuals with a monthly income exceeding Sh149,000 – firmly placed within the high-income bracket.

This stands in stark contrast to the program's initial portrayal as a means to uplift Kenyans struggling with deplorable housing conditions and bridge the national housing deficit exceeding 2 million units.

The PBO's financial and economic analysis of the Affordable Housing Bill 2023 exposes this potential disparity.

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They found that homeownership rates are already low for those earning less than Sh50,000 per month.

While the government has categorized beneficiaries into three income groups, allocating 30 per cent each to social housing (below Sh20,000) and affordable housing (Sh20,000 - Sh149,000), the remaining 36 per cent earmarked for the wealthier demographic raises concerns.

Furthermore, the PBO highlights that despite 74 per cent of Kenyans being formally or informally employed, only 60 per cent of the funds are directed towards housing categories they could access.

This raises questions about the program's true alignment with its stated goals.

Johana Ng'eno, Chairman of the Housing Committee, acknowledges the PBO's findings, stating, "Yes, this was one of the issues that came up during public participation... the disparity in allocations and it will be one of the matters that will be debated on." 

The PBO's report throws a wrench into the program's initial image, suggesting it might fall short of its intended purpose.

As debates begin, it remains to be seen whether the government will address these concerns and ensure the program truly delivers affordable housing to those who need it most.