Affordable housing has been a longstanding challenge in Kenya, driven by rapid urbanization and a growing population. With millions of Kenyans aspiring to own decent homes, the government’s Affordable Housing Programme (AHP) has become a critical pillar in addressing this housing gap. Lands and Housing Cabinet Secretary (CS) Alice Wahome recently revealed that salaried Kenyans contribute between KSh 63 billion and KSh 65 billion annually through a housing levy. These funds are used to construct affordable housing units, with a target of 200,000 homes set for February next year. This article will delve into the progress made so far, the role of the private sector, and the future outlook for Kenya’s affordable housing landscape.
The Government’s Affordable Housing Target
CS Wahome highlighted that the Affordable Housing Programme is making significant strides, with 75,000 units already under construction across 40 counties. These developments have provided employment for 160,000 Kenyans, contributing to both the economy and the housing sector. In addition to the units currently under construction, another 60,000 units are slated to break ground soon, bringing the total to 135,000 homes in various stages of development.
The government’s broader goal is to deliver 800,000 affordable housing units within three years and reach a million units eventually. Each constituency is expected to have a minimum of 220 housing units. By February 2024, the target of 200,000 affordable homes is likely to be achieved, signaling a significant milestone in the Affordable Housing Programme.
This ambitious plan is being supported by the Boma Yangu government portal, which serves as the gateway for Kenyans to apply for affordable housing. So far, 545,000 applications have been received, underscoring the high demand for affordable homes in the country. However, even after meeting the 200,000-unit target, Kenya will still face a deficit of 345,000 housing units, highlighting the enormity of the task ahead.
Understanding Social, Affordable, and Market Housing
During her address, CS Wahome stressed the importance of differentiating between social, affordable, and market housing. Social housing, she explained, is highly subsidized by the government, making it more accessible in terms of price. Affordable housing, on the other hand, is still relatively inexpensive but is aimed at a broader section of the population. Market housing refers to properties that are sold at prices influenced by market forces but still fall within a reasonable range for buyers.
This differentiation is crucial as it clarifies the government’s strategy in catering to different segments of the population. Social housing provides a safety net for the most vulnerable, while affordable housing aims to address the needs of middle-income earners. Market housing is targeted at those who can afford a bit more but still seek reasonably priced homes compared to high-end luxury real estate.
Private Sector Involvement in Affordable Housing
One of the key factors contributing to the progress of the Affordable Housing Programme is the involvement of private investors through Public-Private Partnerships (PPPs). CS Wahome noted that the private sector, which previously contributed around 50,000 housing units annually, is now expected to surpass government targets as the sector continues to open up.
Kamukunji Member of Parliament (MP) Yusuf Hassan emphasized the importance of collaboration between private investors and the government. He pointed to projects like the 289 InCity Suites in Nairobi, developed by GulfCap Real Estate, as an example of how private investments can help bridge the housing gap. The 289 InCity Suites, which offers a mix of studio apartments and duplexes ranging from one- to three-bedroom configurations, showcases the potential of luxury lifestyle developments at affordable prices. With prices starting as low as KSh 2.49 million, these projects offer both investors and homebuyers a rare opportunity to secure property in prime areas of Nairobi.
Suleiman Shahbal, chairperson of GulfCap Real Estate, and director Ahmed Bajaber highlighted that private sector projects not only foster community growth but also provide Kenyans with decent housing for dignified living. The private sector’s involvement is crucial in complementing the government’s efforts to meet the housing demand.
The Role of Technology in Housing Allocation
As demand for affordable housing continues to rise, the government is leveraging technology to streamline the application and allocation process. The Boma Yangu portal has become a vital tool for Kenyans seeking affordable housing units. The platform is currently undergoing its final phase of improvement, allowing for a more efficient allocation system. Once a person applies through the portal, they will be able to receive details on the specific project, pricing, and the unit allocated to them.
This digital approach not only makes the process more transparent but also reduces the bureaucratic hurdles that have historically plagued public housing programs. With such improvements, the government hopes to manage the rising number of applications and ensure that the units are allocated in a fair and timely manner.
Challenges and Future Outlook
Despite the significant progress made in the construction of affordable housing units, Kenya still faces considerable challenges. The deficit of 345,000 units once the 200,000-unit target is reached is a stark reminder of the scale of the housing crisis. Additionally, the rising demand for affordable housing, which may double once units are released to applicants, puts additional pressure on both the government and the private sector to ramp up construction efforts.
However, the government’s commitment to supporting private sector involvement through tax waivers and incentives is a positive step towards overcoming these challenges. By removing unnecessary taxes and duties, the cost of constructing affordable housing can be significantly reduced, making it more attractive for private developers to participate in the program.
Conclusion
The Affordable Housing Programme in Kenya represents a crucial initiative to address the country’s growing housing deficit. With KSh 65 billion raised annually through the housing levy and both public and private sectors contributing to construction efforts, the target of 200,000 units by February 2024 seems within reach. However, the housing gap remains substantial, and continued collaboration between the government and private investors will be essential to meet the country’s long-term housing goals.
As more projects break ground and new technologies streamline the allocation process, the future of affordable housing in Kenya looks promising. Yet, much work remains to be done to ensure that all Kenyans can access decent, dignified housing. The next three years will be critical in determining the success of this ambitious program and its ability to transform Kenya’s housing landscape.
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