•Kenya has a total housing deficit of 2 million units, which is growing by 200,000 units annually while supply is only keeping up at 50,000 units.
•Only 2 percent of the housing production is intended for the low-income market, which has an annual demand.
Image: JACKTONE LAWI
Players in the real estate sector now want the government to set up infrastructure that will enable the delivery of affordable housing projects in the country.
Fanaka Real Estate a firm dealing in Affordable value-added plots says that the government should be more of an enabler in the drive towards affordable housing.
In an interview with the Star, The C.E.O of Fanaka Real Estate Moses Muriithi says supply side policies should be geared towards unlocking land and financing for development.
According to the CEO the National and County government-led projects such as incentivizing land for affordable housing, building hospitals and the provision of amenities such as electricity will help developers deliver on the plan
“Because of the high cost of land in Nairobi County it is becoming easier to acquire land in Machakos and neighbouring countries. And with inadequate roads and security in some of the areas its making invetments expensive,” Muriithi said.
He added that building relationships with the private sector and inducing them to participate in projects that serve the Affordable Housing Agenda can ease the housing pressure.
Muriithi was speaking on the sidelines of an event where the land buying and selling company that is also into property management opened a new office.
“Since the housing shortage is mainly in major towns such as Nairobi which is the hotbed, if we can have a programme enabling these surrounding counties to chip in and offer housing zones this will help ease up pressure on provision of housing in Nairobi,” he added.
This will be its 3rd office situated at Gateway Mall along Mombasa Road.
Kenya's Vision 2030 Third Medium Term Plan (MTP III) 2018-2022 identifies affordable housing as one of the key planks to the realisation of inclusive growth.
Specifically, Vision 2030 committed the government to construct at least 150,000 housing units per annum for the entire duration of the plan.
According to estimates from the Centre for Affordable Housing Finance in Africa (CAHF), Kenya has a total housing deficit of 2 million units, which is growing by 200,000 units annually while supply is only keeping up at 50,000 units.
Only 2 percent of the housing production is intended for the low-income market, which has an annual demand of 250,000 units, while 83 percent of it is targeted at the high- and upper-middle-income portions of the population.