Kenya Housing Debate Shifts to Innovative Financing Models

Kenya Mortgage Refinance Company (KMRC) Chief Executive Officer and Managing Director Johnstone Oltetia speaks during the fifth Kenya Affordable Housing Conference at Lake Naivasha Resort in Nakuru County on August 20, 2026.

By Fride Amiani 

Kenya’s affordable housing debate is increasingly shifting from the construction of more homes to developing sustainable financing models that can enable more households to access and own affordable homes.

The issue will take centre stage at the fifth Kenya Affordable Housing Conference, which brings together financial institutions, policymakers, developers, investors and housing stakeholders to explore innovative ways of widening access to homeownership.

The two-day conference, organised by the Kenya Mortgage Refinance Company (KMRC), will be held from August 20 to 21 at Lake Naivasha Resort in Nakuru County under the theme, “Scaling the Base: Unlocking Inclusive and Sustainable Housing Solutions.”

KMRC Chief Executive Officer and Managing Director Johnstone Oltetia said addressing Kenya’s housing deficit requires a simultaneous focus on increasing supply and ensuring that households can access financing to purchase homes.

“This year's theme speaks to both the scale of the challenge and the promise before us. We need to close the gaps on both supply and demand while ensuring that housing solutions are inclusive, resilient and built to last,” Oltetia said.

He said the country’s housing challenge goes beyond the physical shortage of houses, noting that many Kenyans continue to face difficulties securing affordable and accessible housing finance.

The conference will therefore examine how innovative financial models can lower the cost of borrowing and enable more households, particularly those outside the conventional formal employment system, to participate in the housing market.

Among the key areas of discussion will be blended finance, a model that combines public or development capital with private-sector funding to reduce investment risks and attract additional resources into affordable housing.

Participants will explore how such arrangements can make housing projects more financially viable while reducing the burden of financing for developers and, ultimately, homeowners.

Development finance institutions are also expected to assess their role in supporting the sector through catalytic capital, credit enhancement and other financial instruments capable of unlocking private investment.

Oltetia said strengthening housing finance mechanisms was critical in creating a market where more Kenyans can move from renting to homeownership.

Mortgage liquidity facilities, including KMRC, will form another major part of the discussions. Delegates will examine how providing lenders with longer-term funding can enable financial institutions to offer longer-tenure mortgages at more affordable rates.

Such financing mechanisms are expected to help expand mortgage lending while making monthly repayments more manageable for households.

The conference will also focus on Kenyans who have traditionally struggled to qualify for conventional mortgages. These include informal-sector workers, micro-entrepreneurs, members of Savings and Credit Cooperative Societies (SACCOs) and households with irregular incomes.

Stakeholders will explore financing models that can better reflect the income patterns of these groups and expand access to formal housing finance.

Experts from Kenya, South Africa, Tanzania and India are expected to share experiences from their respective housing finance markets. Their contributions will provide insights into models that have been used to extend credit to low- and middle-income households.

Beyond financing, delegates will examine land administration and governance as critical components of affordable housing development.

Issues such as title regularisation and improved land administration are expected to feature prominently, with stakeholders considering how secure land tenure can make it easier for developers and financial institutions to finance housing projects.

Sustainability will also be central to the conference agenda as Kenya seeks to expand housing supply without compromising environmental resilience.

Delegates will discuss climate-resilient housing, green buildings and resource-efficient construction methods, while considering how such approaches can be implemented without pushing housing costs beyond the reach of ordinary households.

Technology is expected to provide another avenue for reducing housing costs and improving efficiency. Participants will examine modern construction methods and the potential application of artificial intelligence to reduce expenses, improve project management and shorten construction timelines.

The conference will further provide a platform for discussing data on residential property prices, housing affordability, demand and investment trends.

The information is expected to help policymakers, lenders and developers better understand market conditions and align housing interventions with the actual needs and purchasing capacity of households.

Government officials, financial institutions, SACCOs, pension funds, developers, investors, housing agencies and international experts are expected to participate in the conference.

For the first time, homeowners will also have a stronger voice in the discussions, providing first-hand accounts of the financial and practical challenges they encounter while seeking to acquire homes.

Their experiences are expected to complement the policy and technical discussions by highlighting the realities faced by households navigating the housing market.

The conference comes as Kenya continues to search for ways of addressing its housing needs while ensuring that affordable housing is not only available but also financially accessible to a wider section of the population.

The discussions are therefore expected to place greater emphasis on building an inclusive housing finance ecosystem that brings together government, financial institutions, developers, investors and communities.

For Oltetia, achieving sustainable housing solutions will require stakeholders to address both sides of the market ensuring that enough homes are built while developing financing systems that allow more Kenyans to afford them.

“This year's theme speaks to both the scale of the challenge and the promise before us,” he said, stressing the need to “close the gaps on both supply and demand” while ensuring housing solutions remain “inclusive, resilient and built to last.”

The conference is expected to generate recommendations on how Kenya can deepen mortgage finance, attract investment into affordable housing and develop innovative approaches that can help more households achieve the goal of homeownership.