President William Ruto during a meeting with Sheikhs and Imams at State House, Nairobi on August 5,2026. [PCS]
President William Ruto has announced an interest-free, Sharia-compliant financing model under the Affordable Housing Programme, allowing Muslims to buy homes without violating Islamic principles.
Speaking on Wednesday, August 5, at State House, Nairobi, during a meeting with Muslim leaders, including sheikhs and imams, Ruto said the Constitution guarantees equal access to affordable housing for all Kenyans and that the new model removes a long-standing barrier for Muslim homebuyers.
“The Constitution provides that these houses are for all Kenyans. We have put in place a Sharia-compliant financing model, and Muslims will be able to own houses in line with Islamic law,” said Ruto.
The directive replaces the standard financing model, which charged a 3 per cent interest rate on home loans.
The government said the new option addresses concerns over riba, or interest, which Islamic law prohibits, after the previous arrangement discouraged applications in Muslim-majority counties.
Ruto also said the Ministry of Education is preparing a policy and legal framework to recognise madrassa and duksi education within Kenya's formal education system.
“I have directed the Ministry of Education to develop a policy and the necessary legal framework so that madrassa and duksi become part of Kenya's formal education system,” said Ruto.