Overhaul of mortgage market key to addressing housing challenge

Affordable housing project located at Mukuru in Nairobi that was inspected by President William Ruto on October 03, 2022. [Denish Ochieng, standard]

Businessman Nazir Jinnah now says a complete overhaul of the mortgage market by leading banks will play a key role in addressing the current housing challenge.

The businessman today said Kenya has a unique opportunity to ensure affordable housing for all, through public-private partnerships.

In an interview, while hailing President William Ruto's ambitious housing project, Jinnah said it is likely to be a success if its implementation is more collaborative with diverse development partners.

He said as Kenya's economy expands and more people join the middle-class status, the demand for affordable housing is set to rise even more

According to him, a complete overhaul of the mortgage market remains a major stumbling block to potential homeowners.

"Government should ensure that every employed Kenyan can benefit from owning their own home, thereby enhancing personal security, improving quality of life, and contributing to poverty elimination on a grander scale," he said.

The businessman recently participated in planning and preparing a private-public partnership with a globally renowned developer.

An initiative he said aims to develop 4,400 affordable housing units with off-take prices under Sh7 million, facilitated through affordable mortgages from a local bank.

He said the comprehensive complex includes retail, business, and residential components, reflecting a holistic approach to community development.

"This collaboration signals a commitment to addressing the housing crisis by providing accessible and affordable housing solutions," he said.

Jinnah further said the integration of retail and business elements emphasizes the potential for these developments to not only meet residential needs but also contribute to the overall economic and social fabric of the community.

He called on more private players to play a role in addressing the acute housing challenge in Kenya and other developing countries.

President Ruto has said that the ambitious plan, seeking to build 200,000 units a year, will aid in creating jobs for the Kenyan youth and create a steady cash flow in the economy.