KENYAN MINISTER SEEKS REDUCED LOAN RATES TO BOOST HOUSING DEVELOPMENT
Last Updated: 2015-03-24
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NAIROBI, March 24 (NNN-KBC) -- Kenyan Lands Cabinet Secretary (mINISTER) Charity Ngilu says her ministry is engaging developers and financiers on ways to reduce interest rates and the overall cost of construction as it sets a housing construction target of 300,000 units a year by 2017.

“High mortgage and land rates, coupled with the high cost of building materials are undermining affordable housing efforts,“ Ngilu said here Monday at the launch of a project to build low-cost housing units.
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Part of the government’s plan to reduce the huge housing deficit in the country has seen the Ministry of Lands setting its ambitious housing construction target. Ngilu said the government was providing an enabling environment to help achieve this, including provision of the requisite infrastructure.

In a bid to close this gap, Shelter Afrique is set to finance the construction of more than 1,000 low-cost housing units developed by Karibu Homes at Riverview Estate, in Athi River, about 30 kilometres southeast of the capital, at a cost of 2.9 billion shillings (about 31.5 million US dollars).

Speaking during the launch of the project, Shelter Afrique Managing Director James Mugerwa said scalable projects were necessary to meet the demand for affordable housing. The first phase of the project is expected to see the construction of 281 units.

The project is expected to be completed by the end of next year with prices based on the principle that rent or monthly mortgage payments should not be more than one third of disposable income. -- NNN-KBC