The state has been playing a back bench role in provision and development of new housing units. Investors in private sector have taken over development of housing units even at times when statistics show large housing unit deficits, a thing the state should be concerned about.

It is estimated that over 94 per cent of the completed buildings were developed by investors in the private sector. This shows that the states role in supply of housing units is on low margins. Kenya currently has an estimated demand of 250, 000 housing units annually against a small supply of just about 50,000 units a year.

The government however  has made major milestones in development of  houses for civil servants. This saw housing developments by the state worth Sh2.6 billion completed in 2011 compared to the Sh1 billion-worth of housing developments done in 2010.

Houses worth over Sh46 billion were completed last year, representing a 22 per cent growth for the sector, which was beset by a sharp increase in costs of building materials and bank lending rates.

Developers and real estate investors have complained about high interest rates on mortgages preventing them from accessing loans to develop the units faster to close the deficit. Banks and mortgage financiers charge interest rates of between 19%-22% on mortgages.