The Ministry of Lands, Public Works, Housing, and Urban Development has raised housing rents by 10%. The government proposed in a letter dated September 28 from Housing PS Charles Hinga to his Treasury colleague, Chris Kiptoo, that the new rates will take effect on November 1, 2023.
The letter, which was released on Tuesday, was a follow-up to previous proposals made by the State Department in 2021. The new policy was stated as an avenue to generate more money for the department.
“The State Department for Housing and Urban Development on 18th January 2021, wrote to the National Treasury, notifying the Treasury and the respective Ministries, Departments, and Agencies that benefit from the provision of Government Housing, of an increase in the rent paid for Government Residential Housing by 10%. It was noted then, that the rent rates have stagnated since 2001 for most Government Housing, therefore it remains an avenue that can increase Appropriation in Aid (AIA) for the State Department in line with the observations made in the meeting held on 22nd September 2023 with you on enhancing AIA for the State Department,” read the statement in part.
The government’s new policy would mostly affect civil servants who live in properties managed by various government entities and agencies.
Most of the time, government housing provides relief to government employees because the rent charged is usually lower than that of privately owned residences. Notably, the rent rise coincides with the government’s efforts to gather cash for affordable housing programs around the country.