The controversy surrounding the
affordable housing programme manifested on Tuesday as senators put
Lands CS Alice Wahome and Housing PS Charles Hinga to task over its
implementation.
During a meeting with the Senate’s
Roads, Transportation and Housing
Committee, Wahome and Hinga were
confronted with a barrage of questions as senators sought to comprehend the contentious project.
In the session where the two
leaders were expected to defend the
State Department’s Budget Policy
Statement, the senators demanded
to know why Kenyans were being
taxed for the construction of houses
they are not guaranteed to get.
In addition, the legislators wanted
to know why the projects were being built on government land, some
of them without title deeds, and the
reasons behind the low uptake of the
housing levy fund.
“Kenyans are paying a housing levy,
and the land [where the houses are
being constructed on] is provided by
the government, why are you selling
them to Kenyans?” Laikipia Senator John Kinyua posed.
Kitui Senator Enoch Wambua asked, “Why are we
selling houses built by the government using money (taxes) donated
by other people?”
Committee chairman Eddy Oketch
(Migori) sought to know why billions
meant to implement the project were
still lying in the bank.
“I’m concerned about the low absorption of the housing levy fund and
where that money is banked. Is it at
the Commercial Bank or the Central
Bank?” he posed.
In their response, the ministry’s
top officials, while admitting the
projects were being undertaken on
government land, some without titles, assured the government would
issue the crucial documents to the
beneficiaries.
“The houses are given on a
tenant-purchase arrangement. The
title is not needed immediately when
we are building. But on the completion of the units, we will be able to
get the geo-referencing to be able to
develop sectional titles,” the CS said.
She added, “So, there is no danger.”
The CS disclosed that 4,888 houses
have been completed with keys set to
be handed over to the beneficiaries at any moment. '
Some 27,000 people
applied for the houses.
PS Hinga said the taxes Kenyans are paying for the Housing Levy
Fund are meant to subsidise mortgages for successful applicants.
For Kenyans applying under the
social housing programme, the state
imposes a three per cent interest rate
while those seeking affordable housing pay six per cent.
“Those people in the social housing category get the most help. For
example, they pay an interest rate
of three per cent, they don’t need to
pay a deposit, they are given up to 30
years to pay for that house,” he said.
The PS attributed the low absorption of the housing funds to delays in the disbursement of funds by the affordable
housing board, which were caused by
the lengthy consultations between
the National Treasury and the CBK.
