Muslim Kenyans Can Now Buy Affordable Homes Without Interest, Says Ruto

President William Ruto has announced a Sharia-compliant financing option under the government’s Affordable Housing Programme, allowing Muslim Kenyans to buy homes through arrangements that comply with Islamic law.

Speaking at State House in Nairobi on Wednesday, 5 August, during a meeting with Muslim clerics, the President said the new product was introduced after the enactment of the Affordable Housing Act, 2024. He said it would enable Muslims to participate in the housing programme without using interest-based financing.

“There is a Sharia-compliant product in this project. As Muslims, you can purchase 

the houses because they have complied with Islamic law,” he said.

Ruto said some prospective buyers had been reluctant to join the programme because conventional mortgage products involve interest, which is prohibited under Islamic law. He added that the government could not invest in large-scale housing projects in counties with significant Muslim populations, including Garissa, Mandera, Wajir and Lamu, without providing a financing option that meets religious requirements.

He said the Affordable Housing Programme is being implemented across the country rather than only in Nairobi, with completed housing estates already available in several counties. Sharia-compliant financing avoids charging interest and instead uses structures such as lease-to-own agreements, profit-sharing arrangements or direct asset ownership. 

This differs from the programme’s conventional financing options, which charge interest rates of between 3 and 9 per cent depending on the buyer’s income. The government says the new financing model is intended to make the Affordable Housing Programme more accessible by removing barriers that have prevented some Muslim Kenyans from taking part. 

The programme is a flagship initiative of the Kenya Kwanza administration and aims to reduce the country’s housing shortage while supporting economic activity through construction and employment.