Kenya to scale up house construction
27/04/2009 – Housing minister Soita Shitanda has said the government will increase the pace of construction of decent housing units for Kenyans by 50,000 yearly in the next three years.
Mr Shitanda said incentives will be provided to private developers to construct affordable houses in an initiative that is expected to meet and surpass demand.
The minister added that his ministry will enhance the capacity of local authorities to provide serviced land for low cost housing. Plans are also underway to establish a secondary mortgage financier.
Mr Shitanda said the move follows the realization that a large percentage of Kenyans earned too little to enable them secure funds for the purchase of decent houses. The demand for houses in Kenya currently stands at over 150,000 units country wide.
“Kenyan’s of all income levels including those citizens living in rural areas will be now able to access loan facilities by the National Housing Corporation,” he said.
Mr Shitanda was speaking on Thursday during the handing over of a Sh31.6 million dividend cheque to the Finance ministry at Treasury Building in Nairobi.
Speaking during the event, NHC chairman Bosire Ogero appealed to the government to consider providing grants to NHC in order for them to construct low cost housing units for the poor. Mr Bosire requested the government to exempt NHC from payment of stamp duty on transfer of all the land they purchase. The chairman expressed concern that land allocation for the construction of houses was dwindling forcing NHC to purchase it from private owners.
On his part, the Deputy Prime Minister and Minister for Finance Uhuru Kenyatta said the government will continue supporting NHC to ensure it fulfills its mandate. Mr Kenyatta also directed NHC to speed up plans for the issuance of the Ksh 5 billion housing bond.
“The housing bond will assist the quasi government institution to raise the much needed capital for use in housing development. This will help to cater for the ever increasing population in need of housing in the country,” Mr Kenyatta said.
NHC is preparing to embark on the construction of 105 housing units in Kileleshwa, 110 units in Madaraka Phase 1, 182 units in Nairobi West, 80 units in Kakamega and another 40 in Kisii.
