Categories: Business

World Bank Lowers Private Funding Target for Kenya Housing Reform

The World Bank has reduced the amount of private money expected to support Kenya’s housing and land reform programme ahead of a key board meeting in March.

The bank cut the expected private funding from US$900 million (about KSh116.1 billion) to US$360 million (about KSh46.4 billion). As a result, the total financing for the programme has dropped from US$1.35 billion (KSh174.2 billion) to US$910.3 million (KSh117.4 billion).

The proposal is set to be reviewed by the World Bank board on March 19, 2026.
To help fill the gap, more concessional loans have been added to the package. Concessional lending now stands at US$475 million (KSh61.3 billion). In addition, the OPEC Fund has contributed US$75 million (KSh9.7 billion), increasing the share of lower-cost funding linked to policy reforms.

The reduction in private capital points to weaker investor interest or greater caution around risks in Kenya’s housing sector. This puts more pressure on the government to improve project planning, land management, and delivery systems in order to attract private investors back into the programme.

Branislav Opudo

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