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HOUSING

Affordable housing project attracts investment offers worth Sh3 trillion

In Summary

• A total of 800,000 houses are expected to be built built under the public private partnership model and 200,000 will be put up under a social scheme.

• Hinga says they received investment offer of $22 billion in the first round and a third of the amount in the second round from across the world.

National Housing Cooperation houses in Kilimani, Nairobi /JACK OWUOR
National Housing Cooperation houses in Kilimani, Nairobi /JACK OWUOR

Kenya has surpassed funding for the affordable housing agenda, illustrating investors’ confidence in the project, Principe Secretary, Housing Urban Development Charles Higa has said.

Speaking at a Commercial Bank of Africa (CBA) Economic Forum held yesterday  in Nairobi, Hinga revealed that the project has received investment offer of almost $30 billion (Sh3 trillion) way above set target of Sh2 trillion.

‘’Investors are upbeat about this project. We received investment offer of $22 billion in the first round and a third of the amount in the second round from across the world,’’ Hinga said.

 

The project which is part of President Uhuru Kenyatta’s Big Four Agenda is expected to deliver one million housing units in next five years to plunge the gap estimated at 1.8 million units.

The project is however facing headwinds after the High Court in December suspended implementation of the 1.5 percent levy that was to be charged on workers’ monthly pay to create a housing fund.

A total of 800,000 houses are expected to be built built under the public private partnership model and 200,000 will be put up under a social scheme.

The government has pledged to offer Sh40 billion worth of monetary and legislative incentives to the private sector to attract partnerships to drive the agenda.

Hinga further revealed that 280 units along Park Road whose construction commenced early this year are 60 per cent complete and the ministry is targeting to issue the first batch of houses to owners in September.

On Monday, High Court extended orders suspending the implementation of the levy by a week. The case will be mentioned on May 27.

There is also contentions on how the government intends to allocate those houses. In February, Transport and Infrastructure Cabinet Secretary (CS) James Macharia hinted that lottary system will be used.

 

Yesterday, PS Hinga said that the government is working on a logarithm that will ensure a balanced distribution. The plan will be benefiting people earning less than Sh100,000.

A study released by Twaweza on Monday indicated that Kenyans are not confident that social housing will benefit those most in need.

The study four out of ten citizens (42 per cent) say all Kenyans should benefit from the government’s social and affordable housing initiative, and a further three out of ten (28 per cent) say all poor Kenyans should benefit.

However, just three out of ten (28 per cent) say they expect this to happen in reality.

Instead, citizens think poor citizens in urban areas are most likely to benefit (38 per cent.

Today, Kenya Mortgage Refinance Company ( KMRC) which is expected to manage the affordable housing fund will be unveiling the company logo and introduction of the interim Board Members in Nairobi.