Govt Increases Rent on All Its Residential Houses by 10%
The Ministry of Lands, Public Works, Housing, and Urban Development has increased housing rent by 10%.
In a letter dated September 28, 2023, Housing PS Charles Hinga informed his Treasury counterpart Chris Kiptoo that the new rates would go into effect on November 1, 2023.
Tuesday’s letter was a follow-up to the State Department’s earlier proposals from 2021.
It was explained that the new initiative was intended to increase the department’s revenue.
“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%.
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“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 action will primarily affect civil servants who rent from government institutions and agencies.
In most cases, government housing offers relief to government employees because the rent is typically lower than that of privately owned homes.
Therefore, many Kenyans who are struggling to make ends meet as a result of the rising cost of living in recent years will be affected.
Notably, the rent increase occurs at a time when the government is also attempting to raise funds for nationwide affordable housing initiatives.
Govt Increases Rent on All Its Residential Houses by 10%
