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[BUSINESS] · Kenya · 2 sources

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President Ruto announces KSh4 billion smart city for Malaba

President William Ruto has announced plans to construct a KSh4 billion smart city in Malaba, Busia County. The project aims to transform the border town through infrastructure and economic development, including the construction of 2,000 affordable housing units. This initiative is part of a broader KSh18 billion allocation to Busia County for projects such as modern markets, hostels, and housing.

The Affordable Housing Programme (AHP) serves as a cornerstone of the administration's economic agenda, intended to stimulate the construction industry and create employment. The government reports that the programme has already generated jobs for approximately 1.1 million people.

To finance these initiatives, the government utilizes an Affordable Housing Levy, where both employees and employers contribute 1.5 percent of gross salaries. While the programme has faced debate regarding its mandatory nature and financing, the government maintains it is a vital driver for homeownership and urban infrastructure development.

Entities

Busia County · Kenya Revenue Authority · Malaba · Social Health Authority · William Ruto