NHC in Sh200 million project to help build individual permanent homes in rural areas

The National Housing Corporation (NHC) will use Sh200 million to supplement the construction of individual permanent residential houses in the rural areas.

The financial assistance will be in the form of loans, which will be secured on first charge of the property being offered as security.

The loans will be advanced at an interest rate of 13 per cent on a reducing balance method, with a maximum repayment period of 10 years. The amount advanced will go up to a maximum of Sh3 million.

“The decision to focus on rural lending is due to the growing potential of rural areas as a result of devolution and infrastructure development,” said NHC Managing Director Henry Maina.

“Rural and peri–urban housing has grown over the past few years, with infrastructure development expanding into the counties, which  has made many Kenyans venture more into home construction in peri–urban areas, and that is why we are pushing for the financing of home projects in these areas,” said Mr Maina.

The corporation also has plans to increase the Sh200 million to Sh600 million in three years depending on the demand for the loans, Mr Maina said.

HOUSING DEFICIT

“The Corporation plans to develop 1,000 units per year based on rural housing loans. As the amount on disbursement increases, the units developed will increase to more than 2,000. This target can be reached by making information on rural housing available to Kenyans and at the same time working hand in hand with county governments, he said.

The country is grappling with a huge housing deficit in urban and rural areas currently estimated at 200,000 and 350,000 units respectively.

The  shortage, coupled with difficulties in accessing serviced land, has led to the proliferation of informal settlements in many parts of the country. 

NHC will use modern technology to enable it to build more affordable houses within a shorter period than if it were using brick and mortar.

and lower the coost of housing, in order to speed up delivery and lower cost of construction, the corporation intends to use modern building technology, EPS panels, as the high cost of traditional construction and expensive cost of finance has made delivery of affordable housing a challenge to the majority of low and middle-income earners,” said Eng Maina.

The use of modern building technology will speed up and lower the cost of delivery which will translate to more affordable housing units, he says.