The government will lock out speculative buyers and buy-to-let investors preying on the affordable housing units, Cabinet Secretary Alice Wahome has said.
This, as it moves to unveil at least 4,800 units under the different projects country-wide for uptake by buyers amid concerns that the houses are being snapped-up by deep pocketed individuals in the political class and government officials, with the intention of renting them out.
The Lands and Housing CS said the Affordable Housing Board is scrutinising all applications under the Boma Yangu platform to weed out rogue buyers and ensure the targeted beneficiaries who are mainly in the low and middle-income households are served.
To qualify for a house under the Boma Yangu programme, one must be a Kenyan citizen with at least 18 years, have a valid national identity card and an eCitizen account which are used to analyse their eligibility, including income level as shared.
The program is run by the State Department of Housing and Urban Development.
“There is a criteria where the portal conducts a survey on an individual including their income level. We evaluate individuals and are able to decline allocations to individuals considered wealthy or deep-pocketed who could be targeting the units for renting out in the future,” the CS said at a media briefing in Nairobi on Wednesday.
Wahome said her ministry will not allow abuse of the process and that the board has a final say including locking out those giving false information, even as she affirmed prudent use of funds under the programme where annual collections from deductions on payslip is at an average Sh65 billion.
This is from the 1.5 per cent deduction on an employee’s gross monthly income, which is matched by a similar percentage by the employer, funds channeled towards the affordable housing scheme.
There are about 840,622 units in the pipeline with the State Department projecting that the programme will lead to the creation of 2,738,902 jobs in five years.
To enhance the programme, the government has identified pieces of land floated to developers for interest in joint development.
The CS said the 4,800 units will be availed for uptake in the next two months, meaning by end of March, individuals will have started occupying their houses on either a one-off buy or rent-to-own plan available including individual mortgage plans.
Of these, 1,080 units are at the Mukuru project which is the biggest single housing project being developed by the government comprising 13,248 housing units made up of bedsitters ( 26 blocks of 5,616 units), 14 blocks of one-bedrooms with 3, 024 units and 48 blocks of two-bedroomed units, totalling 4,608.
“In March, we expect to release five blocks in Mukuru Kwa Reuben. The sale is through Boma Yangu, an open platform accessible to all Kenyans but we will now allow those who are eying the units for business,” said Wahome.
The first batch of houses will also be used to address any other challenges that come with the registration and allocation process for housing units, and enable improvement to ensure the targeted groups get the houses.
“Mama Mboga, Boda Boda, all are eligible and can get units depending on what they can afford based on their income with payment plans of between 10 and 30 years, the CS said, “The future of this programme is to eradicate slums in the country.”
More units will be availed in June from projects in Homa Bay, Nyandarua, Kirinyaga and Embu. The affordable housing units have been placed under three categories– social housing, affordable housing units and affordable middle class housing units.
The government plans to develope at least 200,000 homes annually and one million units by 2027, in its quest to address the housing shortage in the country where nearly 61 per cent of urban households live in slums.
