The Ministry of Co-operatives, and Micro, Small and Medium Enterprises (MSMEs) Development will work with the SACCOs towards scaling up the offtake of affordable housing.
In a move aimed at increasing the uptake of affordable housing initiatives by Sacco members, the ministry says it will work with KRA and Retirements Benefits Authority to facilitate the amendment of the requisite regulatory provisions to foster inclusion of SACCOs as qualifying institutions in relation to mortgage finance.
The projects earmarked to benefit from the first phase, are those that have already been rolled out like the Starehe housing project.
Cooperatives Cabinet Secretary Simon Chelugui says in the proposed plan Kenya Mortgage Refinance Corporation (KMRC) will provide affordable and accessible financing towards affordable housing by offering long-term financing at fixed rates.
“We will work closely with SACCOs to identify and enter into strategic partnerships with county governments for affordable housing developments on their available lands,” said Chelugui.
KMRC will also pursue with the National Treasury the inclusion of Saccos within the institutions whose borrowing members benefit from the mortgage relief Income Tax provisions.
Last week The State Department of Housing and Urban Development and investment company Gulf Cap Africa Limited signed Sh13 billion deal for the construction of 6,704 affordable housing units in Starehe.
The project will be done in 5 phases over a period of 36 months making it the biggest Affordable Housing Project undertaken by the Ministry this year in line with its goal to achieve the development of 200,000 housing units annually.
Housing PS Charles Hinga said through the scheme his office will Re-align tax policies within the affordable housing agenda.
“We will work on incentives not yet actualized by developing practice guidelines on tax relief and affordable housing relief such exemption of stamp duty for first-time affordable housing home buyers,” said Hinga
The initiative is a joint effort between The ministry, SACCOs, Kenya Union of Savings & Credit Cooperatives (KUSCCO), Sacco Societies Regulatory Authority (SASRA), National Co-Operative Housing Union (NACHU) and KMRC
