The Government of Rwanda aims to deliver 1,296 affordable and social rental housing units by 2029, according to information shared by the Ministry of Infrastructure.
This is one of the targets set under Rwanda’s Urbanisation & Rural Settlement Sector Strategic Plan 2024- 2029, by the Ministry of Infrastructure.
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To achieve the target, planned policy actions include the construction of rental housing in the City of Kigali and emerging satellite cities under the Urban Economic Development Initiative (UEDi 2) project. Additionally, the government plans to establish a legal and institutional framework to support housing development.
Social rental housing refers to subsidised or affordable rental options offered below market rates. Housing units under this category are generally provided by public institutions or government-supported entities to assist people who cannot afford private market rents.
In May 2024, Ministry of Infrastructure officials told Parliament that the government was considering direct investment in a social rental housing programme to provide affordable accommodation for individuals earning up to Rwf200,000 per month.
The officials stated that Rwanda was drawing lessons from countries like South Korea and Singapore, where government-backed social housing programmes have provided shelter to some of the countries’ population.
Through similar efforts, Rwandans earning as little as Rwf60,000 or Rwf100,000 per month could access low-cost housing thanks to public investment, they indicated.
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Data from the Ministry of Infrastructure in March 2024 showed that 50.8 per cent of Rwandans are classified as low-income earners, with monthly incomes between Rwf0 (unemployed or without income) and Rwf200,000.
It indicated that 46.5 per cent were considered middle-income earners, making between Rwf200,000 and Rwf1.2 million, while only 2.7 per cent fell into the high-income bracket with earnings above Rwf1.2 million per month.
The social rental housing programme is primarily designed to serve low-income individuals, while those in the middle-income range are expected to benefit from Rwanda’s affordable housing schemes. High-income earners can typically purchase homes at market rates, either through mortgages or personal financing.
Under Rwanda’s affordable housing policy, a home should cost no more than Rwf40 million to Rwf50 million, with repayment structured over a period of 15 to 20 years.