The rising cost of steel and cement has been identified as one of the major challenges facing the multi-billion affordable housing scheme in the country.
With the scheme getting Sh73 billion from the housing levy, the government has said it is engaging manufacturers in a bid to address the soaring prices of construction materials.
According to Housing PS Charles Hinga, the enactment of the housing levy into law was a game changer in the project that seeks to increase the number of houses in the country.
Hinga admitted that there was a lot of scrutiny in the scheme adding that the government was keen to make sure that there was transparency and openness.
“The housing levy will contribute billion towards this project and we are issuing a warning to all government officers involved, that we shall not tolerate any malpractices,” he said.
Speaking during a housing symposium in Naivasha, the PS admitted that the rising cost of construction posed a challenge to the project.
He identified steel whose prices had risen by over 90 percent in the last couple of months as a major threat, adding that the government was keen to address this.
“We shall be engaging manufacturers of these construction materials to see if we can give tax waivers and other incentives,” he said.
On ongoing projects, Hinga said that 29 projects in 29 constituencies across the country would be awarded this week, as part of the housing project.
He added that another 61 constituencies had been identified and the projects would be tendered in the coming days, while a total of 178 parcels of land were undergoing visibility studies.
“We have engaged all the enablers like Kenya Power, Ministry of Roads, Water and others and they know where all the housing projects are situated,” he said.
Kenya Federation of Master Builders technical director, David Jomeli, admitted that the soaring prices of construction materials could have some effects on the scheme.
He was however quick to laud the project and the move to involve students from TVET institutions in the construction of the houses, with one million jobs expected to be created.
“There is a skill gap in the project and this can be addressed by hiring students from TVET institutions who have technical knowledge in these exercises,” he said.