President William Ruto has announced the integration of a Sharia-compliant financing option within the government's Affordable Housing Programme. This move aims to enable Muslim Kenyans to purchase homes without the burden of interest, which is prohibited under Islamic law.
Speaking on August 5 during a meeting with Muslim sheikhs at State House, Nairobi, President Ruto addressed concerns about the low uptake of affordable housing units among Muslim communities. He acknowledged that conventional home financing, which typically involves interest, had deterred some Muslims from applying.
To resolve this, the government introduced a Sharia-compliant financing product following the enactment of the Affordable Housing Act, 2024. The president emphasized that this option fully complies with Islamic principles, allowing Muslim buyers to participate comfortably in the programme.
Nationwide Affordable Housing Efforts
Ruto highlighted that affordable housing developments are not confined to Nairobi but span across all counties, including predominantly Muslim regions such as Garissa, Mandera, Lamu, and Wajir. He stressed that the government ensured the financing options in these areas respect religious beliefs, enabling residents to access homes without compromising their faith.
"If you go to Garissa, the latest estate there is affordable housing. We are not building affordable housing in Nairobi alone," the president said. He added that the government would not have invested in projects in these counties without establishing financing methods compatible with Islamic law.
Understanding Sharia-Compliant Financing
Unlike traditional loans that charge interest, Sharia-compliant financing uses alternative structures such as asset ownership, profit-sharing, or lease-to-own arrangements. The conventional affordable housing loans carry interest rates from 3% to 9% annually on a reducing balance, adjusted according to the buyer's income.
President Ruto reiterated that the Affordable Housing Act guarantees access to housing for all Kenyans, and the introduction of the Sharia-compliant product ensures no eligible citizen is excluded due to religious considerations.
The government continues to encourage Kenyans to register for the Affordable Housing Programme, which remains a key pillar of the Kenya Kwanza administration's agenda.
