This sentence does not mean the house is unoccupied. It means the house is unlivable or uninhabitable, i.e., not fit to be occupied.
"inhabited" and "lived in" should also be acceptable answers
Why is this not 'the house is not occupied/inhabitable'?
The English translation negates "The house CAN be occupied". Without "CAN" we have "The house is occupied" which I find better as Swahili has a word for "CAN" which is missing in the sentence.
The meaning of "can" is embedded in the verb kukalika.
"haikaliki" comes from the verb "kukalia". There is also the verb "kukalika" which means "to be edible". Using that verb, wouldn't the phrase "the house is not edible" be the same as the one in the question ?
"To be edible" is kulika, without the -ka-.
They are regularly derived and come from kukaa (to sit down/stay/reside) > kukalika
and kula (to eat) > kulika.
" inhabited" should to be accepted and it is more suitable word than " be occupied" but...Isn't. As usualy.
Saying "inhabitable" is the same as 'cannot be occupied.' the answers should be acceptable