UPDATES
Govt raises rent for civil servants’ houses by 10pc
The state has increased the rent of all government-owned houses by 10 per cent effective November 1, 2023.
In a letter to Principal Secretary Chris Kiptoo dated September 28, 2023, PS Housing Charles Hinga said civil servants occupying state houses will have to pay 10 per cent more of the prevailing rates.
The PS said the Ministry of Housing and Urban Development had written to National Treasury on January 18, 2021, notifying the Treasury and the relevant ministries, departments and agencies that the provisions of Government Housing would be increased by 10 per cent.
Mr Hinga said while there have been regular reviews of the housing allowances paid to government employees since 2001, the rent charged for the houses they occupy has remained constant over the years.
“It was then noted that the rentals for most government houses have remained stagnant since 2001, therefore it remains a possibility to increase the AIA for the Ministry of Foreign Affairs in line with the observation made at the meeting of September 22, 2023, with you increasing the AIA for the Ministry of Foreign Affairs,” PS Hinga said in the statement.
“This is, therefore, to seek your concurrence to adjust the rentals for government residential accommodation by 10 per cent with effect from 1 November 2023.”
In June 2021, the Auditor General tabled a report in Parliament showing that almost half of civil servants occupying government houses were not paying rent as required.
According to the report, rent collected for government houses in the year to June 2020 was Sh724.3 million out of a potential annual rent of Sh1.5 billion when fully occupied.
The total number of government houses in the 47 counties stands at 56,892 houses with an expected monthly rental income of Sh127,048,750 resulting in an annual rental potential of Sh1,524,585,000 if fully occupied.
Last week, Nairobi Governor Johnson Sakaja assented to the Nairobi Finance Act 2023, which will see Nairobi residents dig deeper into their pockets to pay for county services and facilities, including housing.
Speaking during the signing of the bill at City Hall on Friday, Governor Sakaja stressed that the said changes were made after public participation and are expected to raise Sh42.3 billion in the 2023/24 financial year. Last year, City Hall collected only Sh25 billion.
Nairobi residents living in county-owned houses are facing rent increases of between Sh2500 and Sh7500.
There is a proposal for a 25 per cent increase for estates such as Ziwani, Ofafa Jericho, Lumumba, Jerusalem, Maringo, Mbotela, Ngong Road, Shauri Moyo, Gorofani, Bahati, New Pumwani, Landies Road, Outering Road, Uhuru and New Pumwani. Ideally, residents in these estates pay between Sh2,000 and Sh22,000 rent.
The county has 17,000 houses in Maringo, Uhuru, Kaloleni, Jericho, Buruburu, Kariobangi South, Ziwani and Jerusalem.
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