Auditor-General Report: Ksh 11.66 Billion Goes Missing from Affordable Housing Program

Kenya's Auditor-General Nancy Gathungu has raised serious concerns about the mismanagement of Ksh 11.66 billion allocated for the country's Affordable Housing Programme. The funds, secured as part of a Ksh 29.99 billion loan from the International Bank for Reconstruction and Development (IBRD) in 2019, were intended to support the Kenya Mortgage Refinance Company (KMRC) in providing affordable home loans to Kenyans. However, a recent audit revealed that the disbursement and utilization of these funds could not be accounted for, raising significant questions about their use.

KMRC, launched in 2018 under the Central Bank of Kenya, was designed to facilitate affordable housing by providing long-term funding to mortgage lenders. Yet, the lack of transparency and unverified expenditures, such as a Ksh 1.67 million trip to Malaysia without supporting documentation, has further fueled public outcry over financial accountability.

With only a fraction of the promised 500,000 homes completed and a significant portion of funds unaccounted for, the future of the initiative remains uncertain. Citizens and stakeholders are calling for more rigorous audits and oversight to ensure that public funds are used effectively in addressing Kenya’s housing crisis.

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