How State can make affordable houses less costly for the poor

Mukuru Met Site Social affordable housing project in Nairobi. [File, Standard]

The government has put on sale the completed 4,888 affordable housing units within 24 counties. In the next four years there are plans to build a further 730,062 units. This ushers in a new phase in the affordable housing lifecycle—the post-construction management. The day-to-day running cost of the developments is an issue that we cannot wish away. It is bound to impact affordability in the long-term. The money contributed towards defraying such costs is commonly known as service charge.

Similar developments within Nairobi have their service charge in the range of Sh4,000-Sh10,000 a month per unit, a tall order for the urban poor. Which then begs the question, who will foot this bill? Will the poorest unit owner—the social housing unit buyer whose income range is between 0 to Sh19,999—afford that level of service charge? How can the Affordable Housing Board reduce the service charge payable or in short, ensure affordability in the long run?

Usually, the unit owners in multiple-owned developments are expected to meet the cost of running the units. The affordable housing units’ owners are not an exception. While the Affordable Housing Act sets one of the purposes of the Affordable Housing Fund as maintenance of the affordable housing schemes, the sheer size of the programme makes it impossible to have the Fund foot the bill once the schemes are sold out hence the need to ensure that the service charge is low and affordable especially to the urban poor.

How can this be achieved? Several options can be explored. They include engaging registered estate agents to offer professional property management services, installation of solar energy, waste water recycling, rainwater harvesting, labour-for-service charge, use of durable but cheap finishes, service guarantees on plant and machinery, amongst others.

The Affordable Housing Act provides the registration regime of the units under the affordable housing schemes as the Sectional Properties Act. Though the Sectional Properties Act provides guidelines on collection and management of service charge, it leaves out the most critical part; the qualification of the individuals who will be engaged in the day-to-day management of these schemes. Evidently, the owners cannot effectively manage them and would require qualified property managers to execute that mandate. In trying to keep down the costs, engaging property managers is a prerequisite.

The Estate Agents Act, Cap 533 of the Laws of Kenya, establishes the Estate Agents Registration Board (EARB) which registers, licenses and sets out the qualifications of property managers. In the recent past, the Affordable Housing Board has advertised a tender for property management services in the 18 completed affordable housing schemes comprising 4,195 housing units. Part of the qualification required in the tender is registration and licensing from EARB. This is likely to professionalise management of common areas and maintenance of the units effectively preserving the units and avoiding the rundown curse that have afflicted some of the units constructed at the beginning of the programme.     

The cost of power in Kenya is one of the highest in the region. Powering common facilities takes a significant portion of the service charge. Installation of solar panels to power these common facilities can significantly reduce power bills. Mini-solar farms can also be erected and any excess power sold to the unit owners or remitted to Kenya Power through net metering agreements provided under the Energy (Net-Metering) Regulations, 2024. Beside reducing the running costs, the income earned from sale of excess power can be used to reduce the service charge payable.

Water bills also contribute a significant portion of these running costs. Waste water recycling systems should be installed and the recycled water used for cleaning and gardening.

Rain water harvesting is another way through which water bills can be reduced. Many areas in our country receive a reasonable amount of rain throughout the year. With minimal treatment, rainwater can be fit for domestic use. However, proper roofing materials should be used to avoid compromising the quality of the harvested water. Some roofing materials like stone coated roofing sheets are not recommended for rainwater harvesting especially where that water is for domestic use.

The affordable housing programme also embraces integrated living—different units targeting different income bands are set within the same building. The social housing units will pose a huge headache when it comes to service charge payments. Innovative approaches towards ensuring affordability can be applied. The Corporations—formerly Management Companies—can adopt labour-for-service charge models. In this model, those who may not afford to pay the service charge can offer their labour in exchange. In the end, this will create a cohesive community where individuals from different income levels live harmoniously.

The lifelong maintenance costs will also be dictated by how long the various components used in the construction can last. Use of long lasting materials especially finishes is crucial. In addition, lifts, water heaters, solar panels, generators amongst other plant and machinery should be supplied with maintenance guarantees for at least 15-20 years. This period would be long enough to allow most unit owners to clear their monthly payments towards their units, be they mortgages, cash or tenants purchase plans.

Evidently, reducing service charge requires a multi-pronged approach. The low income earners, who will mostly buy the social units, will not afford paying a service charge that is high. The Affordable Housing Board has no option but to burn the midnight oil and ensure affordability is maintained in the long run.