Govt Reveals New Affordable Housing Plan for Informal Workers

  • The housing units located along Park Road in Ngara
    The affordable housing units located along Park Road in Ngara, Nairobi County.
    File
  • The government has rolled out a plan to provide affordable housing for Kenyans working in the informal sector.

    Speaking on Tuesday, February 8, during an inspection tour of housing projects being undertaken in Mombasa County, Housing Principal Secretary, Charles Hinga, revealed that the construction of the one-bedroom units commenced after receiving an approval from the national government.

    Hinga noted that the 225,000 units will provide Kenyans categorised as low-income earners with the opportunity to own decent houses.

    An image of Charles Hinga
    Housing and Urban Development Principal Secretary Charles Hinga Mwaura appearing before the National Assembly Transport Committee.
    The Standard

    The PS noted that the project will benefit many people, especially those living in informal settlements.

    "We have a scheme for the social housing, especially for one-bedrooms. We want to target those in the informal sector who do not have a payslip. 

    “They are also Kenyans and we want everyone to be represented in these houses. Out of those ones being undertaken, we have about 225,000 that have already been approved and construction has started," he disclosed.

    Further, PS Hinga noted that the Ministry of Housing will adopt the tenant-purchase scheme model which has been applied in most projects under the affordable housing programme which is part of President Uhuru Kenyatta’s Big Four Agenda.

    From previous projects that have been undertaken in various parts of the country, one-bedroom houses cost between Ksh1 million and Ksh1.5 million.

    Unlike government employees who have an option of statutory deductions of Ksh2,500 from their salaries, Hinga stated that the Ministry will ensure that the houses are made affordable for the target group.

    The PS also revealed that the Ministry will partner with other state corporations and the National Social Security Fund (NSSF) to ensure the tenant-purchase scheme is a success.

    He added that the plan will also see several individuals jointly pay for the houses through the multi-generational housing purchase plan.

    “National Housing Corporation is one of the institutions that provide tenant purchase scheme, NSSF also has money invested in bonds. We have agreed that we shall purchase a certain number of units, and we shall start providing the tenant-purchase scheme,” he stated.

    "We also have a plan where we shall give them loans at 3 per cent interest and then give them 20 to 30 years to repay. We can also do a multi-generational scheme.”

    Construction workers at the Afri-cities Convention Centre in Kisumu in August 2021.
    Construction workers at the Afri-cities Convention Centre in Kisumu in August 2021.
    Construction Review