Kenya faces a critical affordable housing deficit exceeding 200,000 units annually, with approximately 60% of urban populations residing in informal settlements. This paper examines the intersection of urban governance structures and affordable housing delivery mechanisms within the context of Kenya's Big Four Agenda policy framework, which prioritizes housing as a key development pillar. Through systematic analysis of governance practices, institutional frameworks, and policy implementation across major Kenyan cities including Nairobi, Mombasa, and Kisumu, this study identifies critical gaps between policy objectives and implementation outcomes. The analysis reveals that fragmented institutional coordination, inadequate legal frameworks, limited financial mechanisms, and weak stakeholder engagement significantly constrain housing delivery. Key findings indicate that governance failures at municipal and national levels have perpetuated informal settlement proliferation, with only 5,568 housing units constructed between 1986-1994 against substantially higher targets. The paper evaluates governance mechanisms including public-private partnerships, community-led upgrading initiatives, and regulatory reforms, demonstrating that successful housing delivery requires integrated approaches combining institutional capacity building, legal framework modernization, and enhanced financial instruments. Policy recommendations emphasize the need for coordinated multi-stakeholder governance, streamlined regulatory processes, innovative financing mechanisms, and community participation frameworks to achieve the Big Four Agenda's housing targets and ensure sustainable urban development.