Architects have raised concerns over the rising costs of land and construction materials amid the implementation of the Affordable Housing Programme by President William Ruto's administration.
In its annual Status of Build Environment Report, the Architectural Association of Kenya (AAK) explained that the high costs could hamper the affordability of the houses.
According to the report, land prices in Nairobi had soared with a piece of land costing Ksh30 million in 2007, now costing Ksh190 million in high demand locations.
Given the increase in land prices, the government will be forced to pass down the extra costs to the buyers.
"Kingsley Muwowo, Chief Finance Officer at Shelter Afrique, highlighted during the 11th World Urban Forum that market studies suggest land costs should ideally constitute 10 to 15 per cent of the total housing unit cost.
"Regrettably, the current scenario paints a different picture, with land costs representing 40 to 60 per cent of the total cost of a housing unit," read the report in part.
On the other hand, it was noted that the recent taxes imposed by the government in addition to the weakening Shilling had made construction materials more costly.
For instance, the experts cited the imposition of the 16 per cent VAT on fuel products which has led to the rise in transportation costs.
With more additional costs, investors will be forced to increase the prices for houses as they also seek to maintain their profit margin.
On the other hand, it was highlighted that other investors would shy away from undertaking housing projects due to the high cost of doing business.
"Successfully managing the high costs associated with land and construction materials is critical for the success of the Affordable Housing Project.
"It necessitates collaborative efforts among the government, private sector, development partners, wholesale lenders, and investors to improve housing finance availability and establish a sustainable housing finance system," the experts added.
Additionally, the architects advised the government to adopt innovations such as alternative building materials that are cheaper.
