Govt Increases Rent on all It’s Residential Houses

The Ministry of Lands, Public Works, Housing, and Urban Development recently announced a 10 percent rent hike for its residential properties.

In a letter penned by Housing Principal Secretary Charles Hinga and addressed to Treasury Principal Secretary Chris Kiptoo, dated September 28, 2023, the government conveyed that the increased rental rates would come into force on November 1, 2023.

This decision, which was disclosed on Tuesday, serves as a continuation of discussions initiated by the State Department back in 2021 regarding potential rent adjustments.

The ministry’s move to raise rent rates for its housing facilities reflects its response to changing economic conditions and evolving housing market dynamics, ensuring that the properties remain financially sustainable and continue to meet the needs of its tenants.

It was explained that the new move was aimed at raising revenue for the department.

“The State Department for Housing and Urban Development on 18th January 2021, wrote to the National Treasury, notifying the Treasury and the respective Ministries, Departments, and Agencies that benefit from the provision of Government Housing, of an increase in the rent paid for Government Residential Housing by 10%.

“It was noted then, that the rent rates have stagnated since 2001 for most Government Housing, therefore it remains an avenue that can increase Appropriation In Aid (AIA) for the State Department in line with the observations made in the meeting held on 22nd September 2023 with you on enhancing AIA for the State Department,” read the statement in part.

The new move by the government will mostly affect civil servants who rent houses run by various government institutions and agencies.

On most occasions, the government housing offers a reprieve to government workers as the rent charged is usually lower compared to privately owned houses.

The move will therefore affect many Kenyans who are struggling to make ends meet owing to the high cost of living that has been on the rise in recent years.

Notably, the increase in rent also comes at a time when the government is also seeking to raise funds to undertake affordable housing projects across the country.