Afghanistan’s government has put much effort to rebuild the destruction of 40 years period of war and to provide adequate and affordable housing for all citizens since 2001. In doing so, the government has carried out some public housing projects to reduce the housing shortages, especially in the capital city of Kabul. In the past years, studies showed that there is a serious housing issue in terms of accessibility and affordability among Kabul residents. Given the complex nature of housing, it is important to study the housing needs and affordability of citizens to improve the provision of adequate and affordable housing to all. This research sought to undertake a deep study of affordable housing in Kabul city, to explore the issues and problems related to affordable housing, to evaluate the factors that caused the issues and problems, and to identify the challenges facing the successful development of affordable housing in Kabul city. For this research, Khwaja Rawash Residential Township, located in the east of Kabul city had been selected as the case study. The data was collected by using a self-administrated questionnaire survey from 100 residents in the study area. Besides, unofficial interviews were done with some residents and a few government officials in the Ministry of Urban Development and Housing (MUDH). Different methods and instruments were used for data analysis. The findings show that there is a huge shortage of affordable housing in Kabul, Afghanistan. The housing deficit between housing needs and housing supply is very significant and is getting worse every year. The study also identified that the main factors behind the housing affordability issue among the Kabul residents are; high housing costs, low level of monthly income, and inaccessibility of households to housing finance. Finally, the reasons behind the issues and limitations of affordable housing were determined and the challenges that hinder the successful development of affordable housing were identified. In the end, the study recommended the policy and guidelines for the future improvement, strategies, and development of affordable housing in Kabul city.