- Hinga explained that the pricing of these units was way below the average market rates and attractive for buyers in the lower income ranges.
- Over 100 units have been sold to date, further demonstrating that the market has an appetite for projects with similar pricing.
Image: MAUREEN KINYANJUI
More Kenyans stand a chance of owning affordable houses after the government on Monday launched 284 construction units in Kasarani.
Principal Secretary, Department for Housing and Urban Development Charles Hinga said the project will be undertaken by Centum Real Estate in a public-private partnership.
The houses, once completed, will be sold between Sh1.9 million and Sh5.4 million.
"As we launch this project, we recognise that this development is a true testament that the private sector can play a significant role in supporting the government to develop affordable houses and create employment through direct engagement of skilled and unskilled labour in the construction process," he added.
Hinga explained that the pricing of these units was way below the average market rates and quite attractive for buyers in the lower income ranges and appealing to city dwellers.
Over 100 units have been sold to date, further demonstrating that the market has an appetite for projects with similar pricing.
Speaking during the groundbreaking ceremony, Hinga noted that the government was delivering affordable housing and at the same time playing a part in creating employment opportunities for hundreds of youths and women who will work on-site.
According to the Kenya National Bureau of Statistics, only 23.1 per cent of urban dwellers own a house indicating that Kenya lacks decent housing.
The Affordable Housing Programme, which was launched by President Uhuru Kenyatta, is one of the pillars under the Big Four Agenda.
It is intended to provide decent and affordable housing to low and middle-income households.
Under the AHP, the private sector develops the houses and hands them to the government.
The government remains committed to partnering with both local and international investors to support the long-term growth of the real estate sector.
"This commitment is underscored by the reforms that we have championed in the affordable housing program," Hinga added.
To ensure that the citizens can afford these facilities, we have entered into strategic partnerships with various local banks for end-user financing through mortgages.
Six leading local banks have committed Sh335 billion for home ownership mortgages under the AHP.
The strategic partners are Absa, Equity, KCB, NCBA, Housing Finance and Stanbic. They will finance potential homeowners registered in the Boma Yangu portal.
The project developers have been urged to extend the opportunity to the Jua Kali sector to participate in the construction of these houses.
The PS said the sector is a significant contributor to employment in the city. This is because it vital enabler of the manufacturing sector contributing to the national development project while supporting their growth and enabling their families financially.
Still under the AHP, a total of 1,500 units are under construction in Pangani. Another 1,600 will be built in Jevanjee.
Already 1,370 units at Park Road in Ngara were handed over to the government where home owners have already moved in.