BUDGET READING

Uhuru’s housing allocated Sh27.7 billion

Yatani said State has mobilised resources to support construction of housing units

In Summary

•Sh4.6 billion was allocated to the Kenya mortgage refinance company for the enhancement of the company's capital.

•An actual Sh8.7 billion for the construction of affordable housing units

Treasury cabinet secretary Ukur Yatani on April 7, 2022.
Treasury cabinet secretary Ukur Yatani on April 7, 2022.
Image: ENOS TECHE

The National Treasury has allocated the Affordable Housing Programme a budget of Sh27.2 billion.

Treasury CS Ukur Yatani, in his budget proposals, said that the government has also mobilised resources to support the construction of affordable housing units and social housing units.

“To ensure the success of this initiative, I have proposed an allocation of Sh27.7 billion for the affordable housing programme,” he said.

Of the proposed allocation, Sh4.6 billion was allocated to the Kenya Mortgage Refinance Company for enhancement of the company's capital as well as for lending to primary mortgage lenders.

An actual Sh8.7 billion for the construction of affordable housing units, as well as 1.2 billion for the construction of social housing units.

At the beginning of his second term, President Uhuru Kenyatta announced the Big Four agenda, which included the construction of some 500,000 affordable housing units by 2022.

The sector has come under sharp criticism for failing to put in place proper measures to deliver the 500,000 housing units by 2022 as promised by Uhuru despite massive funds allocations.

As of September 28, 2021, at least 2,235 affordable housing units have been occupied and construction is underway on many others, but nothing close to 500,000.  The 2022 General Election is 11 months away.

Among the 2,235 occupied units in the country, 1,730 are at Park Road, Ngara, 250 in the Kisumu civil servants housing project, 152 in Machakos and 463 in Mavoko.

Ongoing AHP

In Mombasa, the Buxton Point Housing Project is currently being developed at the 8.45 acres site to station 2,150 units.

162 housing blocks will be put up under which a one-bedroom house will be sold for Sh1.8 million, while a two-bedroom unit will go for Sh3 million.

Phase one of the project will be completed in May 2022.

The government in May last year embarked on a multi-million project in Nakuru’s Bondeni slums that will see the construction of 605 affordable units on 7.5 acres.

Nairobi has four ongoing projects for a total of 21,642 units.

Pangani Housing Project being undertaken by the Nairobi Metropolitan Service is set to be completed by May 2022, delivering 1,562 housing units from the land previously occupied by 48 tenants

Also, the Government is on course to set up 5,280 units at Clay City in Nairobi and a Sh850 million housing project in Kasarani that will see 284 units constructed.

Construction is ongoing at the Jevanjee estates formally known as Bachelor quarters.

A total of 1,900 units will be developed from land that was previously occupied by 81 houses.

Residents living in Mukuru will pay a mortgage between 10- 15 years at a cost of Sh4,000 per month once the government completes the Mukuru Social Housing Project.

The Sh15 billion project will see the set up of 13, 000 units.

On December 6, 2019, Uhuru launched over 8,000 housing units for United Nations staff in Machakos as part of his agenda on Affordable Housing.

Habitat Heights at Lukenya in Machakos County— one of the Strategic Partners’ projects— is set to deliver will deliver 8,888 units. 

The project is being undertaken by AFRA Holdings Limited through its local subsidiary Singapura Developers LTD (Kenya) in conjunction with Housing Finance

152 units have already been completed and occupied.

Still in Machakos, the Mavoko Sustainable Housing Program at Sh1,2 billion has seen the completion of 463 units.

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