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Originally published by Kenyanstop
November 20, 2025
4h ago
Housing Levy and Rising Taxes Are Pushing Kenyans Away from SACCOs - Report
For many Kenyans in SACCOs, the numbers no longer add up, closing the door to formal, affordable mortgages, even those refinanced by the government...
✨ Key Highlights
A new report reveals that Kenyans are increasingly unable to secure loans from SACCOs for home construction due to increased taxes and the Housing Levy introduced under President William Ruto's administration, leading to a significant downturn in affordable housing prospects.
- A SACCO member earning Ksh200,000 per month now qualifies for approximately Ksh340,000 less in loans compared to April 2022.
- The report, commissioned by SASRA, the Kenya Mortgage Refinance Company (KMRC), and FSD Kenya, highlights that over 70 percent of borrowers seeking land and housing loans earn Ksh100,000 or less monthly.
- Rising statutory deductions, including the Affordable Housing Levy, increased NSSF contributions, and new SHIF deductions, have significantly eroded disposable income, making formal mortgages inaccessible for many and pushing them towards more expensive, short-term general development loans.
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