Nairobi, July 15 -- The State will withdraw the housing allowance of some Kenya Defence Forces (KDF) officers and use the funds to repay investors who bought the Sh3 billion Sukuk bond used to finance the construction of military housing.

New disclosures reveal that the housing allowances of military personnel occupying the 95 percent-complete housing units will be ringfenced for bond repayments over the next 13 years.

Holders of the bond, which was issued in May 2024 to finance the construction of 3,069 housing units, will start receiving payments in August after the expiry of the two-year moratorium.

Liaison Group issued the Shariah-compliant bond, while China Railway No. 10 Engineering Group was the contractor and injected an additi...