The state-owned firm is building 3,000 houses along Thika Road; 1,200 houses in Eldoret; 1,000 houses in Kisumu; 1,800 houses in Mombasa and 4,000 houses along Mombasa Road.
The one-bedroom apartments, which will be sold for as low as Sh2 million, will be built using the Expanded Polystyrene (EPS) technology that involves construction of houses by assembling ready-made EPS foam, sandwiched between a galvanised steel wire mesh that is plastered on both sides with concrete.
NHC managing director Wachira Njuguna said: “We are targeting individuals in the lower and middle market segments who want to access decent housing at friendly prices.”
A single panel measuring 1.5m x 3.0m costs Sh5,000 at the factory – translating to a cost of Sh1,111 per square metre + transport charges + cost of concrete plasterwork.
The NHC low cost houses will be financed at the corporation’s interest rate of 13 per cent, meaning a buyer will pay about Sh25,300 monthly instalments for 15 years.
Rising construction costs coupled with high interest rates have for a long time seen developers shying way from building houses for the low cost market segment but many are now shifting their focus to this market.
NHC has developed a Partnership Policy which it intends to use to seek funding and technological know-how to fast track housing development in the country.
In 2010, the state-owned firm signed a deal with Mahan Industries of Iran to supply funding for the initial phase of construction of 4,000 houses in Mlolongo.