This archive report was first published on 21 November 2019.
The Government has secured $5 billion (Sh510 billion) from private financiers towards its affordable housing project, which aims to put up 500,000 houses by 2022. The funding is a significant boost to the project, which has faced challenges in rolling out the Housing Fund levy.
Housing Principal Secretary Charles Hinga attributed the delay in implementing the Housing Fund levy to several court cases pending over the levy's implementation. The levy, which is 1.5 percent of an employee's salary, has been opposed by the Federation of Kenya Employers.
PS Hinga did not disclose the names of the private investors, stating that they would be unveiled next week. He, however, praised the private sector for coming on board to address the country's 'warped' mortgage system, which has led to a low rate of home ownership.
Kenya has a population of over 40 million, yet only 25,000 mortgages have been issued, indicating a systemic problem that requires a more innovative approach. The PS emphasized that the Government is working with private sector investors to address this issue.
Regarding the transfer of completed low-cost houses at Park Road, Ngara, Hinga explained that the process has been delayed due to legal challenges related to splitting the single title deed. The six-storey 228 housing units were constructed under the first phase of the affordable housing project.
PS Hinga stated that the financiers require the titles to use as collateral for funding the purchase of the houses. He added that the investors have recognized the challenges with the Housing Fund and are working to address them.
