Civil servants in Kenya may soon face significant rent increases for government-provided housing, as the Housing Principal Secretary Charles Hinga has proposed a review to triple the rent for these accommodations.
The rent for the 56,892 government houses, which has remained unchanged for the past 23 years, could see a substantial increase if the Treasury approves the proposal.
Currently, civil servants pay an average of Sh2,200 in rent, with some paying as low as Sh1,000 per month for single rooms and others as high as Sh30,000 for three-bedroom houses in prime locations.
Hinga suggested that super scale public servants residing in upscale areas like State House should expect to pay between Sh90,000 to Sh100,000 per month.
The Ministry of Housing has not fully maximized rent collection from these properties, with an expected monthly rental income of over Sh127 million.
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The Auditor-General highlighted a shortfall in rent collection, with the government houses generating only Sh1.018 billion in rent for the financial year 2021/22, falling short of the potential Sh1.524 billion assuming full occupancy.
Efforts are being made to improve rent collection, including addressing non-remittances from various Ministries, Departments, and Agencies (MDAs). Hinga called for a special audit on MDAs that have collected rent but failed to remit the funds, emphasizing the illegality of spending money outside the budget.
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Various challenges, such as poor repair conditions, alienated houses, and security concerns, have contributed to uncollected rent. The Ministry is implementing measures to enhance revenue reconciliation and rent collection, including the rollout of an Enterprise Resource Planning (ERP) system.
The proposed rent increases, if approved, could significantly impact civil servants’ housing expenses in Kenya.
