NAIROBI (Xinhua) --
Kenya plans to generate 600 million U.S. dollars
for the National Housing Development Fund from salaried
employees annually, an official said on Saturday.
Charles Hinga Mwaura,
Principal Secretary in the Ministry of Infrastructure and
Housing, told reporters that the funds will be used to purchase
affordable houses from the private sector.
“Currently, the real
estate sector has concentrated on building houses for middle and
high-income earners due to huge returns in the sector. The
National Housing Development Fund aims to increase supply of
affordable houses in the market in order to eradicate the
expansion of slums,” Mwaura said during the National Cooperative
Housing Union 29th Annual General Meeting.
The East African
nation has a plan to construct 500,000 affordable houses by the
end of 2022.
Mwaura said that
government will involve the private sector in order to achieve
the ambitious goal.
He said that the
government will facilitate investors to begin construction of
160,000 houses in the 2018/2019 financial year, out of which the
cooperative sector is expected to construct 40,000 low-income
According to the
ministry of infrastructure and housing, only 2 percent of
Kenyans can afford to purchase a decent house through mortgage.
secretary said low home ownership rates are due to a lack of a
developed financial market.
secretary added that Kenya will adopt a multi-pronged strategy
to reduce the country’s housing deficit that is estimated at 2
Mwaura said that to
tackle the challenge of high cost of land, the government plans
to release serviced land to the private sector for construction
of low-cost houses.