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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Mbadi Defends Proposed Tax on Visa, Mastercard Transactions - May 2026
Treasury Cabinet Secretary John Mbadi is defending proposed tax changes in the Finance Bill 2026 that would impose withholding tax on fees paid to global card payment firms like Visa and Mastercard. 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. Land prices in sought-after Kenyan coastal towns like Diani and Watamu have seen significant increases of over 70 percent since the start of the COVID-19 pandemic.
