Police Officers, Civil Servants to Get Priority in Ksh500 Billion Housing Levy Projects

Tuesday, 𝐃𝐞𝐜𝐞𝐦𝐛𝐞𝐫 𝟏7, 𝟐𝟎𝟐𝟒

In today’s money news, the Kenyan government plans to spend Ksh500 billion collected through the housing levy over the next 10 years to build 363,860 affordable homes, alongside infrastructure such as schools, hospitals, and access roads to attract further investments. Targeting security personnel, civil servants, and the growing urban population, the initiative aims to address Kenya's widening housing deficit caused by urbanization and limited investment in affordable dwellings. While the ambitious housing program is part of the State’s broader plan for 2.5 million homes within a decade, critics have raised concerns over the levy’s burden on workers and the execution of the project as reported in the Business Daily.

Offshore investors have turned net buyers at the Nairobi Securities Exchange (NSE) for the first time in two months, signaling renewed confidence in the market. The Business Daily reports that this shift follows increased activity in blue-chip stocks and improved performance of the NSE indices, which had previously faced selloffs. The trend highlights a return of foreign capital, boosting market liquidity and potentially stabilizing investor sentiment.

According to Capital Business, President William Ruto has urged private sector involvement in funding the government’s cooking gas program for public schools to promote clean energy use. Speaking at the launch of the Liquefied Petroleum Gas (LPG) Program at Jamhuri High School, Nairobi, Ruto highlighted the initiative’s role in reducing reliance on firewood and charcoal, conserving trees, and addressing climate change. The program aims to connect 11,000 schools to LPG within a year, aligning with the government’s plan to plant 15 billion trees. The President also emphasized boosting gas consumption and affordability through an Open Tender System, improved infrastructure, and zero-rated taxes, positioning the LPG sector for economic growth and sustainability.

Foreign job contracts for Kenyans fell sharply to 19,310 in the year ending June 2024, down 54% from 42,254 the previous year. The decline is attributed to fewer job offers and the closure of rogue recruitment agencies, according to NTV. The government, through the Ministry of Labour and the Ministry of Foreign Affairs, had set a target of getting 80,000 Kenyans to access job contracts in the international market, but the latest data shows the goal is far from reach. The Kenya Kwanza administration has set an ambitious agenda to export skilled and semi-skilled labour in the international market - particularly in the Middle East region.

Also in the Business Daily, the Kenya Ports Authority (KPA) has launched a major ICT system upgrade worth over Ksh300 million to address frequent downtime and delays in its cargo clearing systems. Contracts have been awarded to Millennium Solutions East Africa and Next Technologies Limited to modernize data centers, local area networks (LAN), and storage infrastructure across ports, including Mombasa, Lamu, and Shimoni. The upgrade, aimed at enhancing reliability and efficiency, comes after a recent system outage disrupted operations, impacting trade across the Northern Transport Corridor and key hinterland markets like Uganda, Rwanda, and the Democratic Republic of Congo. KPA’s improvements are expected to streamline cargo clearance, reduce delays, and sustain regional trade competitiveness.

The Central Bank of Kenya (CBK) is targeting further rate cuts in long-term bond auctions to align with the recent decline in interest rates. The move aims to reduce the government’s domestic borrowing costs and stimulate investor participation in long-term securities. CBK is expected to focus on issuing bonds at lower yields to reflect improved market conditions and declining inflationary pressures. This strategy could also support economic growth by encouraging affordable credit access in the domestic market. Business Daily.

Kenya risks losing the Ksh9.2 billion Nairobi sewerage project funded by the African Development Bank (AfDB) due to significant delays in implementation, the Business Daily reports. The AfDB has disbursed 59% of the funds but warned the project could be “red-flagged” by January 2025 if disbursements do not reach 60%. The project, managed by the Ministry of Water and Athi Water Works Development Agency, has stalled primarily due to insufficient counterpart funds, particularly for compensating affected residents. Initially set to end this month, it has been extended to December 2025. The project is expected to connect 3.1 million Nairobi residents to proper sanitation services, benefiting informal settlements like Dandora and accommodating 22,000 new buildings.