Africa

Kenya struggles with affordable housing crisis as urban population grows

Synopsis

Kenya is experiencing a significant shortage of affordable housing due to its rapidly growing urban population. As more people begin to move to cities in search of better opportunities, the growing demand for housing has increased sharply. Unfortunately, the supply of affordable homes has not kept pace with this demand. Many urban residents now face high rental costs and overcrowded living conditions. The government and private sector are trying to address this issue by planning and developing new housing projects. However, the need for affordable housing remains urgent, highlighting a major new challenge for Kenya's urban development and planning efforts.

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In Nairobi's bustling Kibera neighbourhood, Jacinter Awino lives in a small tin house with her husband and four children. She dreams of moving to a more permanent home through the government's affordable housing plan. However, the 33-year-old housewife and her mason husband can't afford the USD 3,800 needed for a government one-room house. Their current tin home, built for USD 380, lacks basic amenities like a toilet and running water. Awino explained that government houses seem like a dream for her family, but their incomes simply don't allow for it.

The government aims to build 250,000 houses annually to address a housing shortage of 2 million units, according to the World Bank. Launched in 2022, there is no clear data on how many houses have been completed so far. Kenya's cities, including Nairobi, are home to a third of the country's 50 million people. About 70% of urban dwellers live in informal settlements without basic infrastructure, as per UN Habitat.

Some urban Kenyans have moved into a government housing project outside Nairobi, where one-bedroom units sold for USD 7,600 last year. Felister Muema, a 55-year-old former caterer, paid a 10% deposit and plans to pay off the balance over 25 years.

Muema shared her joy, stating that this is where she has started living her life. She appreciates the permanence of her new home, noting that if she plants a flower, no one will tell her to remove it, which she finds life-giving. Experts suggest that to meet the housing deficit, construction and financing methods need to evolve. Ishaku Maitumbi from UN Habitat East Africa recommends a cooperative savings system popular with Kenyan businesses.

Innovative solutions like 3-D printing for home construction are being explored. The company 14Trees has built a showcase house in Nairobi and 10 houses in Kilifi County using this technology, which speeds up building time and reduces costs. However, the cost of these homes, with two-bedroom units at USD 22,000 and three-bedroom ones at USD 29,000, remains out of reach for many Kenyans.

Francois Perrot, CEO of 14Trees, emphasised that to clear the housing backlog, it is necessary to build differently, at scale, with speed, and using low-carbon materials. Architect Nickson Otieno highlights that while new technology has potential, traditional brick and mortar construction remains more accessible for most people due to the availability of materials and skilled workers. Financing is a significant challenge. In June 2023, Kenya's parliament passed a finance law introducing a 1.5% housing tax on gross income to fund affordable housing. This law is being challenged in court, with critics arguing it unfairly targets those with formal employment.

The housing tax has sparked protests, including the storming of parliament, leading to over 20 deaths as police responded with force. President William Ruto defends the tax, emphasising the right to affordable and social housing. Ruto reiterated that affordable housing and social housing are a right.



Source: ET Realty

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