You might soon start seeing the fruits of the 1.5% tax that was deducted from your salary and dented your monthly budget.
According to the Urban and Housing Development PS Charles Mwaura, Kenyans will soon be able to register for the government’s Ksh. 1.3 trillion housing programme through an online portal that will be launched by President Uhuru Kenyatta on December 11, the eve of Jamhuri Day.
Mr. Mwaura yesterday told the National Assembly Transport, Public Works and Housing committee that those who want to own the houses will be required to pay monthly contributions to support the ambitious project.
“Members will provide information on their income and other personal data, after which they will be provided with an e-wallet account into which contributions will be deposited,” said Mwaura.
The project targets low and middle-income households and seeks to unlock home ownership for Kenyans with a monthly income of between Ksh. 15,000 and Ksh. 100,000.
“The low cost segment will involve individuals with a monthly income of Ksh. 15,000 to Ksh. 50,000, while the mortgage gap will be available for those with an income of between Ksh. 50,000 to Ksh. 100, 000,” he added.
According to the PS, about 10,000 houses will be built per month starting from Parklands and the units will range from one bedroom to three bedroom with varying sizes depending on the location and an individual’s or family’s needs.
A one-bedroom house within 30-square metres will cost Ksh. 1 million, two-bedroom unit at 40 square metres will go for Ksh. 2 million while a three-bedroom house at 60 square metres will cost Ksh. 3 million.
Under the social housing unit category, a one-room house will sell for Ksh. 600,000, two rooms at Ksh. 1 million and a three-room house at Ksh. 1.3 million.
“The construction cost per square metre is expected to vary with the primary determining factor being construction methods. It will cost an average of Ksh. 31,000 to construct a square metre, which is Ksh. 14,000 less than the current cost of Ksh. 45,000,” Mwaura said.
The social housing concept has been borrowed from what is already being implemented in Kibera and Soweto A areas, where owners pay a monthly fee of Ksh. 2500 for one room, Ksh. 4,500 for two rooms and Ksh. 6,500 for three rooms.
The PS further explained that those under social housing will pay an interest rate of 3% those under the affordable housing segment 7% while those in the mortgage gap will pay an interest of 10%.
The programme is part of Uhuru’s Big Four agenda on affordable housing where the President intends to have over 500,000 Kenyans owning their own homes by the end of his term.
According to Kenyatta, this will be done by reducing the cost of mortgages, raising low cost funds in both private and public for investment in large scale house construction and cutting the cost of construction by use of innovative ways and materials.
Unfortunately, our country as we know if always find a way to mess up good projects because of corruption. Kenyans can only hope that the narrative of the affordable housing project will be void of scandals and will help Kenyans own homes as is the intention.
Do you think the affordable housing will be able to succeed?