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Originally published by Capital Business
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business
May 12, 2026
2h ago

Experts warn Affordable Housing push could hurt long-term growth

Experts warn Affordable Housing push could hurt long-term growth

In a report titled The Kenyan Economy Through a Hayekian Lens, analysts argue that the government-backed housing project is straining investment in sectors such as manufacturing, industrial technology and agriculture, which are considered key drivers of sustainable economic expan..

✨ Key Highlights

Economic experts are warning that Kenya's aggressive push for its Affordable Housing Programme could harm long-term economic growth by diverting crucial resources from more productive sectors.

  • Investment in sectors like manufacturing, industrial technology, and agriculture is being strained.
  • The programme, launched by President William Ruto in 2022, aims to address the housing deficit and create jobs.
  • Critics argue that while the construction sector saw a rebound to 6.8 percent growth in 2025, this may be short-lived if other key industries face financing challenges.

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