Investments in the affordable housing programme are creating a multiplier effect where direct and indirect benefits to the country include job creation, improved health and safety and increased household resilience, Nakuru County Commissioner Loyford Kibaara has said.
Mr Kibaara indicated that the programme is designed to ensure that low-income earners are able to own homes through the National Tenant Purchase Scheme or rent-to-own payment options.
The County Commissioner noted that the right to housing is enshrined in Kenya’s Constitution under Article 43(1)(b), which stipulates that all citizens have the right to accessible and adequate homes and to a reasonable standard of sanitation.
The administrator indicated that to realise the delivery of adequate, decent, affordable, and sustainable houses across the country without burdening the already overstretched national budget and debt levels, the government has extensively leveraged private sector participation to fund the development of projects.
Speaking at the Regional Commissioner’s plenary hall when he officially inaugurated a public participation forum on the 2024 Draft Affordable Housing Regulations, Mr Kibaara said Kenya has been experiencing increasing urbanisation rates estimated at 3.4 percent per year, adding that housing is a key social determinant of people’s health and overall quality of productivity.
“Due to rapid urbanisation the state came up with National Housing Policy 2016 and National Slum Upgrading and Prevention Policy 2016. The 2024 Draft Affordable Housing Regulations will operationalize the Affordable Housing Act 2024,” stated the administrator.
The rapid urbanisation rate, he pointed out, was resulting in average national annual housing demand estimated at 250,000 units.
He said the average national annual housing supply is approximately 50,000 housing units, leading to a deficit of about 200,000 housing units per year and a cumulative backlog of 2 million housing units.
“The government initiated the Affordable Housing Programme which targets the delivery of decent and affordable housing to low and middle-income households. The programme commits to delivering 200,000 housing units per year by activating projects across the nation, as well as increasing the number of mortgages from the current 30,000 to 1 million with favourable ownership terms that have monthly repayments as low as Sh5,000,” he said.
He said the affordable housing project was promoting economic recovery by linking micro, small, and medium enterprises and Jua Kali sector as suppliers of various inputs such as hinges, doors, and windows among others, to housing projects.
Mr Kibaara disclosed that the affordable 605 units in Bondeni within Nakuru Town East County were 100 percent complete with engineers on the ground putting final touches on drainage and sewerage systems.
He said the Sh504 million, 220-unit affordable housing project in Bahati sub-county was 38 percent complete.
The project which is expected to be completed in July 2024 is part of plans by the government to construct more than 50,000 low-cost housing units in the county within the next 10 years.
President William Ruto launched the construction of more than 220 housing units on August 22, 2023.
Mr Kibaara further indicated that another 120-unit project in Molo was also 40 percent complete.
Mr Richard Tuta, a director at the State Department for Housing said the affordable housing projects in Nakuru have created employment for over 1500 residents.
Tuta said among those employed are mechanical engineers, plumbers, masons, steel fixers, carpenters and welders.
“Masons, carpenters and other skilled workers also get an opportunity to be registered and accredited under the National Construction Authority (NCA),” he said.
He announced that the registration under NCA will enable skilled workers to secure jobs in other government or private construction projects in and outside Kenya.
Tuta said the project will be a centre for technology transfer that will empower workers and residents.
The director revealed that the national and county governments were awarding tenders for construction materials to small and midsize enterprises (SMEs) instead of importing them.
According to the draft regulations that were published by the Ministry last week, the board shall have to confirm that the applicant for a home building loan has an operational voluntary savings account with the fund before advancing a mortgage facility.
Kenyans applying for a rural affordable housing unit will be required to make an application in writing to the board, providing a copy of their title deed and an official search.
They will also submit to the board building plans approved by their respective county governments and a priced bill of quantities by a registered quantity surveyor.
Under the regulations, applicants will also be required to submit to the board valuation reports issued by the government valuer or a valuer registered under the Valuers Act.
Applicants for affordable housing will also be required to produce copies of their KRA certificate numbers and compliance certificates.
The regulations provide that one of the requirements for an application for a unit is proof of income and ability to repay.
By Anne Mwale
