President William Ruto has called for urgent reforms to the global financial system and stronger multilateral financing mechanisms to help African countries tackle the growing housing crisis driven by rapid urbanisation.
Speaking at an international urban development forum attended by world leaders and housing stakeholders in Azerbaijan, President Ruto said developing countries, particularly those in Africa, continue to face major barriers in providing affordable housing because of what he described as an unfair international financial structure.
The President noted that Africa’s urban population is growing rapidly and warned that the continent must urgently invest in sustainable housing and urban infrastructure to meet future demand.
He said Africa is projected to host nearly a quarter of the world’s population by 2050, with the majority expected to live in towns and cities, making affordable housing one of the continent’s most pressing challenges.
According to the President, African countries continue to face difficulties accessing affordable financing despite their economic potential and natural resources.
“The paradox is that the countries that need concessional funding the most pay more than the countries that don’t need it when they go to the market. That has to be corrected,” he said.
President Ruto argued that the high cost of borrowing has continued to slow housing development and infrastructure expansion across many developing nations.
The meeting brought together several international leaders and urban development stakeholders, including King Mswati III and Anaclaudia Rossbach, Executive Director of UN-Habitat.
During the forum, the Kenyan Head of State highlighted Kenya’s Affordable Housing Programme, describing it as one of Africa’s leading models in sustainable urban development and inclusive economic growth.
President Ruto said the global housing crisis continues to affect billions of people worldwide, with many living in informal settlements or lacking access to decent housing.
He explained that Kenya currently has about 1,100 informal settlements accommodating nearly seven million residents, a situation that informed the government’s decision to prioritise affordable housing as a key national development agenda.
To lower construction costs and make homes more affordable, the President said the government allocated public land for housing projects at no cost, a move he noted reduced housing costs by approximately 30 per cent.
Additionally, he said the government engaged professionals in the construction sector and successfully reduced professional fees from 10 per cent to 2.5 per cent of total project costs.
The President added that contractors and developers were encouraged to increase production capacity by constructing more than 3,000 housing units annually compared to previous lower output levels.
The government also standardised building materials to support large-scale production and reduce expenses. To address financing challenges, President Ruto said Kenya established the Affordable Housing Fund using locally mobilised resources to create a reliable financing structure for housing projects.
According to the President, the fund has already supported housing projects worth approximately $5 billion, equivalent to about KSh650 billion, through completed and ongoing developments over the last 35 months.
“In the past three years, we have built 273,000 housing units, 8,000 house keys handed over, while 55,000 keys will be handed over by the end of this year. In the pipeline, we have 700,000 housing units,” he said.
He further stated that the programme has created employment opportunities for young people across the country, with about 640,000 jobs generated so far.
The President said the government aims to increase that number to one million jobs by 2027 as construction activities continue to expand.
Beyond housing, President Ruto said the programme is helping address the challenge of slums while also reducing land fragmentation by promoting planned urban development and preserving agricultural land.
He maintained that Kenya currently runs the largest housing programme on the African continent.
He also used the platform to renew calls for reforms at the United Nations Security Council, arguing that Africa remains underrepresented despite the continent accounting for a large share of issues discussed by the council.
“For the survival of the UN, there must be reform that corrects this anomaly so that the UN becomes representative, democratic and brings on board the view of Africa,” he said.
