As the country marks 10 years after the launch of Vision 2030 in 2008, there is a need to evaluate how well it will be achieved especially in the provision of decent housing. The Vision aims at creating a globally competitive and prosperous nation with a high-quality life.
Kenya is a youthful country characterized by rural-urban migration because young people move from rural areas to urban areas in search of employment, this has created a great need for housing in urban areas.
Prolonged renting periods
Unfortunately, this young population is faced by prolonged renting periods due to the existence of expensive properties that do not fit their monthly incomes of between US $295-US $984. The Kenya National Bureau of Statistics (KNBS) data on income distribution in the formal sector defines Affordable Houses as units that can be afforded by individuals who earn US $482 and below per month, which is a total of 74.4% of persons employed in the formal sector in Kenya.
This population has a vision of settling their young families before old age knocks in. However, how can a family with such a monthly income afford a property worth over a million? These households can only afford a mortgage of up to US $4917 or even less considering the current economic situation prevalent in the country. This means that if properties offered in the market are below US $4917 it will greatly help such families buy land and also meet their monthly bills.
Big Four Agenda
This is a need that saw the launch of The Big Four Agenda; among them Affordable Housing, Manufacturing, Food Security and Universal Healthcare. The government is in the process of implementing the Affordable Housing Agenda. However, only 500,000 units will be constructed and the prices will range from US $5900 – US $29,504. If trusted real estate companies committed to offering affordable land in areas close to urban areas more families will be settled by 2030.
Real estate developers have for a long time focused on high-end properties which continue to remain vacant despite the growing population. What if the private real estate companies considered offering affordable land in areas close to urban areas such as Ngong, Tinga, Nakuru, Naivasha, Kiambu etc. and issue the clients with title deeds? This will enable the young population to venture into the construction of their own homes gradually until they settle in their own homes. This is a sustainable way of ensuring we handle the current crisis of lack of housing facing urban centers and also ensure the continuity of this agenda. The writer is the CEO, Username Investment Limited.
By Reuben Kimani
