An affordable housing project.
Consultants in the ongoing President William Ruto’s affordable housing programme have petitioned Parliament over non-payment of dues totalling over Sh1 billion that has been pending for the last nine months.
In the petition dated November 27, 2024, the sector players engaged as consultants in the construction management of the affordable housing project say the long delay in settling their dues threatens the success of the programme.
“The prolonged delay in payment has caused undue financial strain and emotional distress to the affected consultants. This impasse threatens the successful implementation of the affordable housing programme,” reads the petition.
The petition by the Architectural Association of Kenya (AAK), the Institute of Quantity Surveyors of Kenya (IQSK), and the Institution of Engineers of Kenya (IEK) is signed by Mr Karori Maina.
The petitioners urged Parliament to direct the State Department for Housing and Urban Development to finalise all contracts and facilitate the payments.
They also want lawmakers to intervene to ensure that all pending payments to consultants are processed and settled without further delay.
The petitioners have also urged the National Assembly to investigate the fighting among ministry officials in the housing department, which they claim has affected the timely release of their dues.
“We humbly request Parliament to strengthen accountability and streamline administrative processes in the affordable housing programme to prevent such issues in the future,” the petitioners urged MPs.
The petitioners say they have diligently offered their professional services for the last nine months but they have not been paid due to infighting among officials in the state department.
“This situation undermines the programme’s credibility, demotivates key personnel and risks stalling a flagship government initiative,” reads the petition.
The consultants say they have no formal contracts with the government as an agreement signed on February 24, 2024 was cancelled by Principal Secretary of the State Department for Housing and Urban Development, Charles Hinga, and new ones are yet to be signed.
A letter of the agreement signed in February reads “Your tender dated November 22, 2023, for procurement of consultancy services for project management and construction management for affordable housing, tender No.MLPWHUD/AHP/192/2023-2024 is hereby accepted.”
“Consequently, you are hereby notified that you will be required to sign a framework agreement that will enable you to participate in the mini-competition. Attached, find a copy of the framework agreement which you are required to sign and revert on or before Thursday 28th February, 2024,” reads the letter.
However, in another letter dated September 18, 2024, PS Hinga cancelled the letter and told the consultants the engagement letters shall be re-issued pursuant to section 87 (3) of the Public Procurement and Asset and Disposal Act, 2015
“Reference is made to letter Ref: 25th February, 2024, informing you that the evaluation process had been concluded and that you were successful. This is to inform you that the above letter has been recalled. The letter shall be re-issued pursuant to section 87 (3) of the Public Procurement and Asset and Disposal Act, 2015
“You are therefore requested to resubmit your complaints within 14 days from the date of the attached letter. We take this opportunity to thank you for your participation and wish you good luck in your future engagements,” reads the letter.
Mr Hinga did not respond to calls and messages sent to his known number on the matter.
Treasury Cabinet Secretary John Mbadi told the Nation that he is not aware of the pending payment to contractors.
The revelations now risk posing great danger to the government in fulfilling one of its major ambitious campaign pledges.
In its manifesto, Kenya Kwanza had projected to put up at least 250,000 affordable housing units every year.
In implementing its ambitious plan, Parliament enacted a law that provides for a 1.5 percent deduction of the gross income of salaried Kenyans with a similar amount matched by the employer.
The affordable housing programme is one of President Ruto’s five pillars under the Bottom-UP Economic Transformation (BETA). The programme is designed to allow ordinary citizens to live in decent homes.
It also aims to create jobs and business opportunities for millions of unemployed young people.
President Ruto has on several occasions defended the housing programme, saying it is not only intended to replenish housing units but also create jobs.
During the second year assessment of its achievement, the government said the programme has created an estimated 160,000 direct jobs while others are engaged in the construction value chain through the supply of various materials such as doors, windows, cement and sand.
During this year’s Mashujaa Day event in Kwale County, President Ruto said the government has made significant progress in advancing this ambitious agenda, which aims to transform lives and livelihoods by providing affordable, decent homes for millions of Kenyans
“The Affordable Housing Programme is central to these efforts, with a target of delivering 200,000 homes annually to meet the growing demand for housing. This initiative aims to tackle the deficit that has left many Kenyans living in insecure, unsanitary, and poorly constructed dwellings while also fostering the growth of sustainable communities and generating job opportunities across various sectors,” President Ruto said.
“The progress so far is remarkable: 124,000 housing units are at different stages of completion across 75 sites in 37 counties. These projects include homes for military, police, and correctional services personnel, student accommodation, and private-sector developments,” he added.
Dr Ruto said that so far, the Affordable Housing Programme has created over 160,000 jobs throughout the housing value chain.
He said the government has allocated Sh4.4 billion specifically for payments to micro, small and medium enterprises (MSME) supplying goods and services under the program.
