30 per cent land offer to sweeten deal for low cost house developers
What you need to know:
- Housing PS Charles Hinga said the move will allow the developers to put up quality units for the low cost segment without suffering losses.
- Addressing pension scheme trustees in Nairobi Tuesday, Mr Hinga said the money the investors put into the projects will be repaid over an agreed period of time with the government acting as a guarantor of the funds.
- Prospective buyers will register on a soon-to-be established online portal where their personal details will be captured enabling the government to determine a family’s income before deciding on the kind of house they can afford, he added.
Housing developers participating in the government’s low cost housing plan will be allocated 30 per cent of the project land to put up high end units to recoup their costs.
Housing PS Charles Hinga said the move will allow the developers to put up quality units for the low cost segment without suffering losses.
Addressing pension scheme trustees in Nairobi Tuesday, Mr Hinga said the money the investors put into the projects will be repaid over an agreed period of time with the government acting as a guarantor of the funds.
“We want to ensure Kenyans get the best deal in terms of quality, affordability and decency while investors enjoy access to the land that is fully serviced,” he said.
Prospective buyers will register on a soon-to-be established online portal where their personal details will be captured enabling the government to determine a family’s income before deciding on the kind of house they can afford, he added.
The first lot will be put up in Nairobi’s Starehe A and B, Muguga Green, Shauri Moyo(A,B,C,D) Makongeni and Mavoko in Machakos, totalling 36,840 housing units.
“We shall look at an individual family’s income to determine their capability to service the mortgage. Their KRA annual filings, M-Pesa and bank activities as well as their Home Ownership Savings Plan contributions will be used to determine their creditworthiness before they are declared legible to acquire the houses,” said the PS.
He added that buyers will also have an option of paying off-plan during the two-year construction period and later allowed to move in under a Rent-to-own scheme.
