Economy

State increases house rents by 10 percent for civil servants

hinga

Principal Secretary State Department of Housing and Urban Development, Charles Hinga. PHOTO | JEFF ANGOTE | NMG

bonface_img
kabui-pic

Summary

  • State Department of Housing has raised rents on all government-owned residential houses by 10 percent effective April 1, 2022. 
  • In a letter to Permanent Secretary Treasury Julius Muia dated January 18, 2021, PS housing Charles Hinga said that civil servants occupying State houses will be required to pay 10 percent more of the prevailing rates.

State Department of Housing has raised rents on all government-owned residential houses by 10 percent effective April 1, 2022. 

In a letter to Permanent Secretary Treasury Julius Muia dated January 18, 2021, PS housing Charles Hinga said that civil servants occupying State houses will be required to pay 10 percent more of the prevailing rates.

“Notice is hereby given that effective April 1, 2022, rent on all government residential houses will be increased by 10 percent of the prevailing rates,’ said Mr Hinga.

“These reviews will still be way below the market rate since government residential houses  are part of employer-assisted  housing for civil servants.”

The rent raise, he said has been occasioned by the fact that there have been several reviews on house allowance for civil servants since 2001 yet the amount they pay in rent has remained stagnant over the period.

Mr Hinga said that while there have been regular reviews on house allowances payable to government workers since 2001, the rent charged on the houses they live in has remained constant over the years.

“It is important to note that there have been several reviews on house allowance for civil servants since 2001 but the rent applicable to houses they occupy has remained largely the same over the said period,” he said.

In June last year, Auditor General Nancy Gathungu tabled a report in parliament showing that nearly half of civil servants occupying government houses do not pay rent as required. 

According to the report, rent collections on government houses for the year to June 2020 was Sh724.3 million out of an annual rent potential of Sh1.5 billion when fully occupied.

The total number of government houses across the 47 counties stands at 56,892 houses with an expected monthly rental income of Sh127,048,750 resulting in an annual rent potential of Sh1,524,585,000 assuming full occupancy.