The National Assembly Lands Committee has embarked on reviewing proposed amendments to the Land Act aimed at accelerating loan recovery timelines under Kenya's Affordable Housing Programme.
The changes are part of the Business Laws (Amendment) Bill, Senate Bill No. 51 of 2024, which seeks to reduce the time lenders take to enforce loan defaults and sell properties developed or acquired under the affordable housing category.
Proposed Amendments
- Loan enforcement period shortened from 90 days to 45 days.
- Notice period before exercising power of sale cut from 40 days to 20 days.
- Amendments apply exclusively to affordable housing properties; other property classes remain under existing timelines.
The bill, passed by the Senate without amendments, is now under consideration by the National Assembly. Lands Committee Chairperson Joash Nyamoko emphasized the need to balance investment promotion with protecting borrowers' constitutional rights.
"Our responsibility is to ensure the amendments encourage investment while safeguarding Kenyans from unfair property loss," Nyamoko stated.
Stakeholder Concerns and Consultations
While proponents argue that faster loan recovery will reduce financial risks and stimulate affordable housing mortgages, some MPs expressed reservations.
- MP Joseph Gitari questioned if the reduced timelines allow vulnerable borrowers sufficient time to regularize loans before foreclosure.
- MP Thaddeus Nzambia warned the changes might discourage potential homeowners worried about losing their homes swiftly.
Nyamoko assured that the committee will engage widely with lenders, developers, legal experts, and consumer advocates before finalizing recommendations.
The committee aims to submit its findings by mid-August 2026, although lawmakers acknowledged the need for possible extensions to complete thorough stakeholder consultations.
