State Policy and Urban Housing in Kenya examines the gap between the formal stated Kenya Government housing policy objective for housing the low income groups and its evident outcome, manifested in the proliferation of informal low income housing. This is done by searching into the policy and the institutional framework through which housing programmes are implemented using Umcja Tenant Purchase (UTP) scheme as a case study. The institutional framework of such housing programmes in Kenya normally include several actors from both public and private sectors. However, the implementation of this particular UTP Scheme is evaluated by examining the role of the key implementing agency, the Nairobi City Council’ (NCC). Other public and private institutions, namely United States Agency for International Assistance (USAID), Ministry of Local Government (MLG), Ministry of Lands & Housing (MLH) and the National Housing Corporation (NHC), are only examined in so far as they pertain to the issues being assessed.

Subsequently, an assessment of both the socio- economic profile, level of satisfaction with services and the tenure status of UTP residents is undertaken., The findings show that the State policy objectives of housing the low income groups has failed and a policy redirection is needed. UTP neither fulfilled its initial objective of housing the low income groups nor satisfied the real beneficiaries who hardly fall within the target group. The main reasons being the lack of a local conceptualization of the housing problem and how best to solve it and the inappropriate policy instrument of housing the low income groups through a single umbrella of home ownership; without clear outlined targets at policy level and how to identify them. Subsequently. the lack of consensus among the political and the administrative officials, mostly at the output stage of policy also limit achievement. As reflected on individual and collective demand making, representation of interests and difficulty to resolve conflict which dominated the implementation of UTP.