Affordable housing under the Kenya government’s Big 4 agenda has up to the beginning of this year received investment offer of almost $30 billion (Sh3 trillion), way above the target of Sh2 trillion. Principal Secretary, Housing Urban Development Charles Hinga said.
The project is expected to deliver one million housing units over the next five years to narrow the gap estimated at 1.8 million units.
‘’Investors are upbeat about this project. We received investment offers of $22 billion in the first round and a third of the amount in the second round from across the world,’’ Hinga said.
A total of 800,000 houses are expected to be built under the public private partnership model and 200,000 will be put up under a social scheme. Hinga revealed that 280 units along Park Road whose construction commenced early this year are 60 per cent complete and the ministry is targeting to issue the first batch of houses to owners in September.
Kenya is to start a credit guarantee scheme to enable the self-employed and informal sector workers access loans, including for buying homes.
President Uhuru Kenyatta said recently that Treasury was working with development partners to start the scheme that will include a housing guarantee mechanism for those with low incomes or employed in the informal sector to help expand access to housing finance.
The government has also pledged to offer Sh40 billion worth of monetary and legislative incentives to the private sector to attract partnerships to drive the agenda.