Private developers pull back as State housing projects expand

Affordable Housing Project in Nairobi on December 14, 2024.

Photo credit: Evans Habil | Nation Media Group

More private investors have cut back on new housing projects amid growing uncertainty about the disruptions of the State’s ramped-up affordable housing programmes (AHPs), high material costs, and market shifts toward mixed-use units.

The value of building approvals in Nairobi, for example, dropped by 24.5 percent during the first 11 months of 2025 compared to a similar period the previous year, highlighting a sustained slowdown in private construction activity.

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