Govt Increases Rent on All Its Residential Houses by 10%


The Ministry of Lands, Public Works, Housing and Urban Development has increased rent for its houses by 10 per cent.

In a letter by Housing PS Charles Hinga to his Treasury counterpart, Chris Kiptoo, dated September 28, the government indicated that the new rates would take effect from November 1, 2023.

The letter which emerged on Tuesday was a followup on earlier propositions made by the State Department in 2021.

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

Housing Principal Secretary Charles Hinga speaking to journalists at State House Nairobi on May 24, 2023.

Kenyans.co.ke

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.

The Bondeni Affordable Housing Project in Nakuru County on Monday, February 13, 2023

PCS





Source link