State and private sector players inject Sh2.3 trillion into housing

Businessman Suleiman Shahbal, PS Charles Hinga, and Ahmed Badawi during a tour of Buxton Housing Project in Mombasa, February 2022. [Kelvin Karani, Standard]

Housing and Urban Development Principal Secretary (PS) Charles Hinga has urged financial institutions and real estate players to come up with affordable mortgage solutions to help Kenyans acquire homes.

Speaking during the Affordable Housing Programme (AHP) open-day at Bondeni in Nakuru town that intends to put up 600 units, Mr Hinga said investments in the sector surpass the Sh2 trillion mark.

According to a recent analysis of registered projects by the National Construction Authority, between 2017 and October 2021, 23,269 housing projects, with over 224,000 units were registered across the country.

“These projects have a cumulative contract sum amounting to Sh2.3 trillion representing a substantial investment in housing. Bondeni is one of the first projects outside Nairobi,” he said.

Mr Hinga unveiled the show houses of the project that is expected to be completed next year - a partnership venture between the State Department for Housing and Urban Development and Kings Developers.

“We have heard the updates on implementation and details of the project and understand what an achievement we have in this project. I am gratified that our collaboration is in the newest City in Kenya – Nakuru. It makes me equally proud,” said Hinga.

During the AHP open-day, key institutions and employers in Nakuru including Absa, KCB, Equity Bank, Cooperative Bank, Stanbic, NCBA, Housing Finance and Unaitas were represented. Nakuru Deputy Governor Eric Korir, who represented Governor Lee Kinyanjui, said the new city had an acute shortage of affordable housing.

The PS said there are several other projects are in the pipeline, including the recently unveiled Stoni Athi City that will construct 10,000 units. He said State was working on a new Housing Bill to streamline the operations of the housing sector - including the sale of homes off-plan.

The PS said often the public have lost their investment when the projects are not completed and cannot recover their money.