Kenya's government is exploring a new funding model for its Affordable Housing Programme due to a shortfall in the 1.5 per cent Housing Levy. The current levy collections are insufficient to meet the ambitious target of constructing 200,000 units annually.

• The Housing Levy currently raises approximately Ksh6 billion per month, which Housing Principal Secretary Charles Hinga stated is not enough on its own.
• The government is seeking long-term financing options from international development partners, including the World Bank.
• This proposed model aims to combine Housing Levy collections, proceeds from unit sales, and partner financing to sustain construction under the Tenant Purchase Agreement scheme.

The Salaries and Remuneration Commission (SRC) has identified Taita Taveta, Homa Bay, and Machakos as counties significantly exceeding the legal limit for spending on civil servant salaries.

• Homa Bay and Taita Taveta are spending 63% of their ordinary revenue on personnel emoluments, far above the 35% ceiling set by the Public Finance Management (PFM) Act.
• The SRC's findings highlight the pressure these counties face in funding development projects due to high wage bills.
• Overall county spending on salaries rose by Ksh16.42 billion in FY 2025/2026, though the wage bill-to-revenue ratio slightly decreased due to revenue growth.