The government’s ambitious plan to deliver 500,000 affordable housing may take two more years due to lack of proper structure in place.
Cotu Secretary General Francis Atwoli in a petition has noted that there was no public participation before the plan was executed.
Under the plan, the government has proposed a 1.5 percent housing levy on salaries of those employed as a contribution to the fund. The move has, however, been suspended by the court after the Central Organisation of Trade Unions (Cotu) challenged the government plan.
The Central Organisation of Trade Unions had poked holes in the government’s National Housing Development Fund, opposing deduction from employees’ salaries before the necessary regulations and structures are in place.
While attending a workshop yesterday developers said that the delay in implementation of the structures might lower the process.
“Private sector can only put up houses if they are guaranteed returns. “It is a very risky market especially at the bottom of the pyramid so unless they are assured that they have a guarantee that these units will be taken up, it is very hard for them to invest,” the Architectural Association of Kenya President Emma Miloyo told journalists at the summit.
While speaking to a local television last week, former Kiambu governor William Kabogo said that the government erred in the process of the execution.
Kabogo said the fund meant for building low-cost houses has the makings of a scam.
Currently, Kenya needs at least 250,000 housing units every year to meet demand. This is against the annual average of 50,000 units delivered by the government and private developers per year.