This archive report was first published on 5 September 2019.
As the Government grapples with the challenge of affordable housing, experts suggest that the cost of owning a home in Kenya can be reduced. According to Morvin Achila, an economics lecturer at the University of Harar, Somaliland, the Government should explore innovative ways to encourage private firms to build cheap houses and develop building technologies to bring down the cost of construction.
Achila also recommends reducing the cost of land, suggesting that the Government give out under-utilised parcels of land to private developers to construct affordable houses. He adds that land value concept should be considered as an alternative to addressing the high cost of buying a house.
John Osike, a building and planning officer with the Nairobi County Government, notes that accessing financing is a significant challenge for low- and middle-income earners. He suggests that banks reduce interests on loans for mortgages, making it easier for people to own houses and homes in major towns.
The Kenya Mortgage Refinance Company (KMRC) has been established to address the financing aspect of affordable housing. KMRC aims to work with the banking sector and co-operative movement through saccos to make available affordable mortgage finance for those wishing to own houses and homes.
Osike cautions that the affordable housing concept should not lead to taxing of employees' salaries without their consent. Odoyo Owidi, the chairman, Lake Basin Development Authority, notes that Kenya's first medium-term goal of 2009/2012 of Vision 2030 strategy had a target of increasing housing production from 35,000 to 200,000 annually.
