Ruto said the plan would make it easier for contributors to buy homes and help those already repaying mortgages to reduce their costs.

“I will propose a legal change in Parliament to allow contributors to access a KSh5 million affordable home loan at a single-digit interest rate, for any housing unit in the market,” the President was quoted by Kenyans.co.ke as saying.

He added that the loan could also be used to clear existing mortgages, giving people more flexibility in managing their housing expenses.

The proposal follows the recent handover of the first 1,080 homes in Mukuru Kwa Reuben, Nairobi, under a rent-to-own scheme.

Tenants will pay for up to 30 years to own the homes. In Homa Bay, Ruto also oversaw the handover of 110 units under the Boma Yangu affordable housing project.

Kenya’s housing levy, introduced in March 2024, requires employees to pay 1.5% of their gross salary, matched by the same amount from employers.

In return, contributors get a housing tax relief of 15% of the total amount deducted, with a maximum relief of KSh108,000 ($820) each year, or KSh9,000 ($68) per month.

From late 2024, the housing levy and other statutory deductions, including the Social Health Insurance Fund and post-retirement medical fund, have been treated as deductible expenses when calculating taxable income.

This change means these contributions are no longer taxed twice, which lowers the final amount workers owe under the Pay-As-You-Earn (PAYE) tax system.

The government says these reforms aim to make housing more affordable and ease the tax burden on ordinary Kenyans.

"This fund will enable Nigerians to access mortgages at single-digit and low double-digit interest rates, making homeownership more attainable," Nairametrics quotes Edun. The mortgages, expected to be available within weeks, will have repayment terms of approximately 25 years.

Mortgage lending is a relatively small segment of Nigeria’s property market, as it is in many parts of Africa. Loans typically require significant upfront deposits, with interest rates around 20% for a 10-year term, forcing most property transactions to be conducted in cash. This has led to a system where homeownership remains out of reach for many Nigerians, with research indicating that most citizens live in rented accommodations.

Nigeria is facing an acute housing shortage, with the Federal Mortgage Bank of Nigeria estimating that at least 28 million additional homes are needed to meet demand. The new fund is expected to provide much-needed financing for prospective homeowners while also giving property developers guaranteed off-takers, thereby accelerating construction activity in the country.