In Summary
  • The national government will have a memorandum of understanding with county governments for delivery of 2,000 housing units per year.
  • The passage of the Finance Bill in September this year paved the way for workers to be deducted 1.5 percent of their monthly pay to finance the new low-cost housing.

The groundbreaking ceremony for 500,000 affordable houses by the government will be held on December 11 at Parklands, Nairobi.

Housing Principal Secretary Charles Mwaura told a parliamentary committee the houses, which will be built in the next four years, will cost Sh1.3 trillion and are aimed at ensuring middle-income households have access to decent and affordable dwellings.

Mr Mwaura told the National Assembly Transport, Public Works and Housing Committee that there will be three categories of houses that will be available to Kenyans depending on the level of income: social, low-cost and mortgage gap.

The social houses will be for people earning up to Sh14,999, low-cost (Sh15,000-49,999) and mortgage gap (Sh50,000-99,999).

COST

One-bedroom houses under the social housing programme will cost Sh600,000, with those buying them expected to pay Sh2,500 per month for 25 years.

Under the same house category, a two-bedroom house will cost Sh1 million, for Sh4,500 per month, while a three-bedroom house will go for Sh1.4 million, for Sh6,500 per month.

The houses will be located in all the 47 counties and will be constructed on both national and county government land.

The Principal Secretary said the national government will have a memorandum of understanding with county governments for delivery of 2,000 housing units per year.

Under the MoU, county governments will provide land while the national government will provide finances and capacity building.

VETTING

Mr Mwaura told the MPs that the houses will be awarded through an affordable housing portal using a free and transparent system.

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