Financial institutions have been urged to embrace partnerships to drive up the elusive homeownership in the country.
This, as an annual urban growth rate hits 3.9 percent amid rising high housing demand estimated at 250,000 units annually against a supply of a paltry 50,000 units.
Cumulatively, Kenya has a housing deficit of two million units, or an 80 per cent.
With off-plan housing purchasing schemes facing confidence challenges, partnership with financiers means houses will be built on time because they have an interest in allowing customers to assume ownership and commence loan repayments on time.
One such partnership has seen Insurance firm Madison and Housing Finance Corporation partner to grow homeownership among working-class Kenyans.
The pact will enable the two firms to develop, a planned mixed-use project in Athi River called the VillaKazi Homes.
In the deal, Madison will provide 100 acres valued at Sh3 billion while HFC will provide end-user buyer financing, project management expertise as well as sales support for the project.
VillaKazi Homes is a gated community with predesigned house plans aimed at providing a uniform and premium ambiance while also giving buyers a seamless kickoff to their homeownership journey.
‘’We are looking at bringing to life a mixed-use community that will have over 600 homes. The community will provide residents with holistic living including social, commercial and education amenities,’’ said Madison Life managing director Githua Ngaruiya.
The project, located in Athi River will be implemented in two phases on a 60-acre plot of land and on a 40-acre parcel, respectively.
HF Group CEO, Robert Kibaara noted that the partnership was in line with its strategy to provide Kenyans with holistic banking and property ownership solutions.
“This partnership reinforces HF Group’s commitment to enriching lives by providing Kenyans with relevant homeownership opportunities and financing options,” added Kibaara.
The project will contribute towards alleviating the housing deficit amongst the thousands of working-class Kenyans in the rapidly growing industrial area within Athi River and nearby satellite towns.
Over the years the Kenyan housing market has been facing a dynamic set of interrelated challenges; high cost of land, high cost of housing units, high incidental costs – stamp duty, legal fees, difficulty in property registration and limited access to long-term affordable finance.
