• Kenyans will be able to monitor their contributions through the affordable housing portal dubbed "Boma Yangu".
• A one bedroom house will be sold for Sh1m, two bedrooms Sh2 million and a three bedroom unit Sh3 million.
Cash deducted from workers' pay for the affordable housing programme will be safe, PS Charles Mwaura said on Wednesday.
In a statement to newsrooms, the PS Housing and Urban Development said no contributor will lose his or her money even in cases where one does not get a house under the programme.
“Contributors who will not be allocated a house will be guaranteed their money back in 15 years or upon retirement,” Mwaura said.
He said Kenyans will be able to monitor their contributions through the affordable housing portal dubbed "Boma Yangu".
He said the government plans to have a one bedroom house sold at Sh1 million, two bedrooms for Sh2 million and a three bedroom unit for Sh3 million. For the social housing component, the cost of a unit starts from Sh600, 000.
Mwaura said since the prices will be below the market rates, the monthly mortgage payments will be equivalent to the rent members pay per month.
The PS said the contributions will pave the way for capitalisation of the Housing Fund, which has a lot of benefits for potential home buyers and investors.
He said the Housing Fund will lower the interest rates from the current average market rates of 13.5 per cent to between three and seven per cent. Repayment periods will be increased by up to 25 years.
Mwaura said the affordable housing programme will provide direct and indirect job opportunities for skilled and unskilled Kenyans. Major beneficiaries of the programme will be the Jua Kali sector and Small and Medium Enterprises (SMEs).
“In Park Road, for instance, three jua kali associations have been engaged by the developer to provide products and services worth Sh200 million, which include the production of 8,400 doors for Sh122 million," Mwaura said.
He said there will be other opportunities in the management of facilities. This will ensure common property infrastructure and services so that they are a consistent quality and functionality.
Mwaura said they expect a rise in the consumption of locally manufactured building materials during the implementation of the programme.
He said at the closure of window one for the call for applications on February 14, 78 potential projects had been identified in 21 counties. This was revealed after an evaluation of the expressions of interest from potential strategic partners that responded to call for applications.
Window two of the call for applications is ongoing and the deadline is April 30. It involves land owners, developers, financiers, contractors and technology owners. The state department has reported an overwhelming response from the listed categories.
More than 200,000 Kenyans have already registered for the affordable housing programme through Huduma centres and the affordable housing portal dubbed "Boma Yangu".
Edited by Pamela Wanambisi