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Originally published by Nation Business
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business
May 6, 2026
13h ago

State housing contractors bag Sh86bn super profits

State housing contractors bag Sh86bn super profits

For every Sh100 levy deduction from Kenyans, Sh30 ends up in the pockets of contractors...

✨ Key Highlights

Contractors involved in Kenya's Affordable Housing Programme (AHP) are projected to earn Sh86.5 billion in profits, a figure significantly higher than international standards for taxpayer-funded projects.

  • Contractors are set to make a 30% net profit on projects valued at Sh285.5 billion.
  • This profit margin far exceeds the recommended 2% to 15% typical for government contracts globally.
  • Developers benefit from avoiding land acquisition costs and receiving tax incentives, despite a report commissioned by the government highlighting these high profit margins.

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