Govt Introduces Special Mortgages for Kenyans Building Village Homes

𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟏𝟖, 𝟐𝟎𝟐𝟒

Workers aiming to build homes in rural areas can now access affordable mortgages under a Ksh10 billion loan programme funded by the Housing Levy. Single-family applicants can borrow up to Ksh5 million, while multiple-family dwellings are eligible for up to Ksh10 million. These loans, to be repaid over 10 years at single-digit interest rates, are managed by the National Housing Development Fund. According to The Business Daily, the programme aims to tackle housing challenges in rural Kenya, where only 1.5% of households live in quality housing, compared to 14.1% in urban areas. Critics, however, term such investments as “dead capital,” with limited economic returns. Despite collecting Ksh64 billion from the Housing Levy, the government disbursed less than Ksh1 billion in loans for rural homes in the last financial year, raising concerns about the programme’s impact.

Electricity bills are set to rise slightly this month as the Energy and Petroleum Regulatory Authority (Epra) increases the Foreign Exchange Rate Fluctuation Adjustment (Ferfa) to Ksh1.014 per unit from November’s Ksh0.69, representing a 150% hike. Despite this, a reduction in the Fuel Cost Charge (FCC) to Ksh3.57 per unit from Ksh3.72 partially offsets the impact, with the overall cost for users consuming over 100 units rising marginally to Ksh28.8 per unit from Ksh28.5 in November. The forex charge, which cushions power sector players from currency fluctuations, has remained lower in recent months due to a stable shilling, trading at about Ksh130 to the dollar. However, high dependence on costly thermal power, especially in the coastal region, has kept fuel costs elevated despite increased hydropower potential during heavy rains. Experts point to inadequate transmission infrastructure for cheaper renewable energy as a key challenge in reducing electricity costs, as reported by The Standard. 

The Kenya Revenue Authority (KRA) has waived Ksh507.7 billion in penalties and interest under its tax pardon programme, which ended in June 2024. The waiver targeted 3.12 million taxpayers who cleared principal tax arrears accrued until December 2022. Businesses and individuals with Ksh54.50 billion in arrears applied for forgiveness during the programme, but only Ksh43.93 billion was paid, leaving a 19.41% shortfall. Lawmakers recently extended the amnesty, allowing taxpayers with outstanding arrears for the period up to December 2023 to settle by June 2025. The Business Daily reports that failure to honour repayment plans could result in KRA enforcement measures such as PIN deactivation, travel bans, and asset seizures. 

The Star reports that environment CS Aden Duale has ordered the immediate suspension of a special licence allowing a private developer to construct a leisure and entertainment facility within Ngong Road Forest. Duale directed NEMA and the Kenya Forest Service (KFS) to formalise the revocation and submit a detailed report within three days. Public outrage over forest encroachment prompted the move, with Duale also halting the issuance of further special-use licences. The CS has called for an audit of previously issued licences to ensure transparency and accountability. NEMA inspectors and police are set to inspect the site for corrective action. 

The government plans to cut the cost of a 13kg cooking gas cylinder by up to Ksh881 through bulk competitive imports under an Open Tender System (OTS), as The Business Daily reports. The Cabinet has approved a plan allowing local firms to bid for LPG imports, with the lowest bidder supplying the market. A recent report revealed that LPG could land at Mombasa for Ksh87 per kilo under OTS, significantly cheaper than the current Ksh135.3. High prices have led to increased charcoal use and some traders sourcing cheaper gas from Tanzania. The OTS model, previously used for importing petroleum products, is expected to enhance competition and reduce gas prices by up to 114%.

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The High Court has dismissed a preliminary objection challenging the suspension of the sale of Old Mutual assets, allowing the case to proceed, as reported by Capital Business. The objection, filed by Old Mutual, argued that the petitioner, Joel Kibe, lacked the legal standing to challenge the suspension as he was not a registered member of the company. However, Justice Josephine Mongare ruled that the issues raised needed further review of facts and evidence, which could not be resolved at this preliminary stage. Kibe, who claims ownership of 1,544,900 shares in the company through a nominee account, had argued that the objection was without merit. The case will now proceed to a full hearing.