Housing Committee meets MDAs over 2025/26 Budget Policy Statement

Housing Committee meets MDAs over 2025/26 Budget Policy Statement

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐅𝐞𝐛𝐫𝐮𝐚𝐫𝐲 𝟐𝟎𝐭𝐡, 𝟐𝟎𝟐𝟓. 
𝐁𝐮𝐧𝐠𝐞 𝐓𝐨𝐰𝐞𝐫, 𝐏𝐚𝐫𝐥𝐢𝐚𝐦𝐞𝐧𝐭 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠𝐬.

The Committee on Housing, Urban Planning and Public Works held sessions with the State Departments for Housing & Urban Development and Public Works to consider the 2025/26 Budget Policy Statement (BPS) in preparation for the next financial year's Budget.

Chaired by Hon. Johanna Ng'eno, the Committee was briefed on the Budget Implementation status of the financial year 2025/26. Key policies underpinning the expenditure ceilings and indicative performance targets linked to the policies and programs in the 2025 BPS, among others.

The Committee noted that the State Department for Housing and Urban Development (SDHUD) had utilized Kshs. 21,110.07 million out of the approved budget of Kshs. 85,195.80 million as of 31st December 2024 representing an absorption rate of 25%.

The poor uptake of funds sparked eyebrows in the Committee, which sought to be apprised on why markets stall, utilization of Boma Yangu proceeds and utilization of accrued interests of the Affordable Housing monies invested in Treasury Bills.

Speaking before the Committee Members, the Permanent Secretary for SDHUD, Mr. Charles Hinga attributed the low absorption rate to delays in the disbursement of funds by the Affordable Housing Board caused by lengthy consultations between the National Treasury and the Central Bank of Kenya.

He also informed the Committee that the lengthy procurement procedures affected the timely implementation of projects and that the late passing of the County Government Additional Bill (CGAA) has delayed the disbursement of conditional grants to the counties for the second Kenya Informal Settlement Improvement Project and Second Kenya Urban Support Programme (KUSP11).

Regarding Boma Yangu funds, PS Hinga assured the lawmakers that the monies are safe and that they are converted into a deposit once the contributors select housing units.

Owing to the completed work certificates amounting to Kshs. 265,535,925.32 million, maintenance and provision of protection work for 20-foot bridges affected by the erosion of riverbanks estimated at Kshs. 40 million, the State Department for Public Works did not tender its proposal for new capital projects for the FY 2025/26.

Instead, PS Arumonyang requested the Committee's indulgence on reinstatement of Kshs. 400 million to enable the State Department to work seamlessly.

To reduce over-dependency on the exchequer, the Managing Director for the National Construction Authority, Eng. Maurice Sketch requested the Committee's support on the re-introduction of the Construction Levy as per the NCA Act section. 31 and repeal of Legal Notice No. 24 of 2017 dated 28th February 2017 by including it in the BPS 2025/26.

Members of the Committee underscored the critical role played by the State Department for Public Works, which entails supervising the quality of government housing projects, calling for its adequate budgetary allocation.

"Was the building code a beauty contest?" Posed the Committee's vice chairperson.

However, the Committee resolved to engage the Ministry's Cabinet Secretary on the budgetary woes bedevilling the State Department of Public Works.