High home costs lock out Kenyan majority

The high cost of buying homes continues to keep most Kenyans out of ownership.

Access to housing remains elusive for millions in the country and across the African continent, according to Shelter Afrique, a player in the property sector.

“It is a well-known fact that 90 per cent of the population in Africa cannot afford to buy a house or merely do not qualify for a mortgage, even if they actually have the ability to support the repayment of a monthly instalment,” Shelter Afrique managing director James Mugerwa said.

Some of the charges related to home ownership include high mortgage rates, stamp duty, cost of land acquisition and requisite deposit for house purchase. Consequently, this calls for a shift towards formal rental housing as a viable option to solve the housing crisis.

150,000 NEW UNITS

The principal secretary in the Ministry of Lands, Ms Mariam El Maawy, said at least 150,000 new housing units were needed each year to meet the current shortage in Kenya.

This is despite the fact that less than five per cent of those in need can afford to purchase them.

“We need to build 150,000 new housing units to mitigate the shortage and provide decent housing for Kenyans,” Ms Maawy said.

She estimated the deficit to be between 200,000 and 250,000 units a year.

The government has an ambitious plan to put up 100,000 houses annually over the next three years in partnership with the private sector in a bid to plug the deficit.

In many urban areas, the majority of affordable rental houses is in the informal sector, with poor housing conditions and little security of tenure.

In October this year, an African housing conference will be held in Nairobi to discuss the challenges and opportunities in the sector.

The meeting will bring together government officials, private rental property owners, financiers and non-governmental organisations.