May 31, 2022 - In a bid to make homebuilding more accessible, NyumbaMkononi, a Kenyan startup, has developed a blockchain technology service that connects homebuilders to construction material suppliers.
The platform, which operates through a USSD mobile application-enabled system, allows prospective homeowners to purchase materials in small quantities based on their daily income.
According to NyumbaMkononi's CEO, Naftal Nyabuto, the company has invested Sh30 million to build a solution that seeks to reduce construction costs by up to 30 percent.
Using the platform, homebuilders can purchase materials in small quantities, such as 1kg of cement, through M-PESA, and the purchase is stored in real-time and reflected into the client account as 'material.'
The concept also helps clients not use the money haphazardly, as it cannot be diverted to other uses once committed to the platform, said Nyabuto.
By streamlining the value chain and eliminating brokers, NyumbaMkononi hopes to reduce the cost of construction significantly and give low-income earners access to affordable credit.
