Kenya should put up more than two million low-income houses every year to meet an increasing demand of estimated 500,000 new city dwellers annually. The Kenya Economic Update released yesterday by World Bank shows the country should make housing more affordable for Kenyans by improving access to finance.
This, the report states, will lead to numerous benefits including economic growth, job creation, and deepening of the financial sector which will in turn spur the country’s economic growth.
“Kenya can make housing more affordable to many more Kenyans, and in turn create new channels to boost overall economic growth both at the national and county levels.” lead financial sector specialist and co-author of the report Mehnaz Safavian said.
The report shows that Kenya’s production of housing units is currently less than 50,000 units annually which is only a quarter of the number targeted under the National Development Plan, Vision 2030 strategy. This has resulted in a deficit of more than two million units, with nearly 61 per cent of urban households residing in urban areas.
In order for the country to fully tap into the housing multiplier effect there needs to be collaborative efforts between government and the private sector as well as a supportive policy and regulatory environment.