The Rwanda Housing Authority (RHA) and the City of Kigali have begun securing land in Mpazi and Nyabisindu neighbourhoods to roll out a rent-to-own affordable housing model targeting low-income earners. The initiative aims to help households transition from renting to homeownership by allowing tenants to pay monthly rent plus an additional contribution that accumulates over time and eventually enables them to purchase their homes. ALSO READ: Kigali City banks on ‘rehousing model’ to reduce unplanned settlements The model is informed by a June 2023 study conducted by the Rwanda Housing Authority, the Ministry of Infrastructure, and the Development Bank of Rwanda (BRD), which highlighted the affordability gap in urban housing. Findings showed that about 30% of urban households earn Rwf100,000 or less per month, while another 27% earn between Rwf100,001 and Rwf200,000. Despite ongoing affordable housing projects, fewer than 10% of Rwandans can afford existing units. “An affordable house is one that you rent or buy by spending no more than 30% of your income. For low-income earners, a rent-to-own model will help secure access to housing. We have begun resettling households to free up land for this initiative,” said Noel Nsanzineza, Deputy Director General of the Rwanda Housing Authority. Part of Nyabisindu will host the new scheme following ongoing upgrades under Kigali’s rehousing model. ALSO READ: Mpazi rehousing model to move more families from unplanned settlements The rehousing approach is designed to upgrade informal settlements without relocating residents far from their original communities. It involves pooling land contributed by residents, consolidating plots into larger development sites, and constructing denser housing such as apartment blocks. Landowners are compensated with housing units based on the value of the land they contributed and the number of homes previously on it. “Residents in Nyagatovu and Nyabisindu previously occupied 32 hectares. Under the rehousing project, they will settle on just eight hectares, freeing up land for affordable housing, including rent-to-own units,” Nsanzineza explained. The remaining land will be prioritised for immediate construction, with a strong focus on rent-to-own housing. The pilot phase will be followed by efforts to attract private investors. “We are prioritising this model. Tenants will pay roughly what they currently spend on rent and could own their homes after about 20 years. To attract investors, incentives such as tax exemptions on construction materials will be necessary,” he said. ALSO READ: Inside models to upgrade unplanned settlements in Kigali Lower mortgage interest rates are also expected to support affordability. Over the past seven years, more than 18,000 households have accessed homes through the mortgage refinancing scheme, with rates falling from 18% to 11%. Authorities aim to reduce rates further to between 1% and 2%. Mpazi project to expand affordable rentals Separately, land freed under the Mpazi rehousing project in Gitega Sector, Nyarugenge District, will be used to develop affordable rental housing, according to City of Kigali spokesperson Emma-Claudine Ntirenganya. The city completed 688 housing units under the rehousing model in 2025. ALSO READ: City of Kigali to use $70m to upgrade major unplanned settlements “We are promoting vertical housing to maximise limited land and accommodate more residents. This approach, applied in Mpazi, has created space now being developed for affordable rental housing,” she said. Kigali plans to build 10,000 affordable homes over the next five years as part of efforts to upgrade informal settlements and expand access to decent housing for low-income and vulnerable households. Investors are being encouraged to adopt cost-efficient construction technologies to keep prices within reach. Data from the National Institute of Statistics of Rwanda shows that about 54% of Kigali residents are low-income earners, with monthly incomes ranging between $38 and $225, while 13% earn less than $38. Middle-income earners account for 21%, while high-income households, currently the primary target of the housing market, make up less than 12%. ALSO READ: 10 major changes in the new Kigali master plan The city aims to ensure that 90% of residents have access to decent housing by 2050, with at least 60% classified as affordable.
