State allocates Ksh27.7Bn for Affordable Housing
Kenya Mortgage Refinance Company (KMRC) continues to play a leading role in delivering Affordable Housing. It has so far disbursed over Ksh2.0 billion to seven primary mortgage lenders, among them Saccos, since September 2020.
The State-funded mortgage lender is currently processing an additional Ksh 7.0 billion.
To provide a sustainable source of funding and to complement the existing credit lines, Treasury Cabinet Secretary Ukur Yatani said the company, whose bond was recently listed on the Nairobi Securities Exchange, successfully issued its first Corporate Bond of Ksh 1.4 billion under a Medium-Term Note Program of Ksh 10.5 billion.
The Government’s Affordable Housing agenda started in 2013 when it embarked on a plan to provide decent and affordable houses for citizens.
This was envisaged to create additional jobs, provide a market for manufacturers and suppliers, and raise the contribution of the real estate and construction sectors to GDP.
The Government has been implementing policy and administrative reforms targeted at lowering the cost of construction and improving access to finance for affordable housing.
It has also mobilized resources to support the construction of affordable housing units and social housing units.
In the current financial year, the Government proposed an allocation of Ksh 27.7 billion for the Affordable Housing Programme, which included Ksh 4.6 billion to Kenya Mortgage Refinance Company to enhance the company’s capital and on-lending to primary mortgage lenders.
Mr Yatani said that another Ksh 8.7 billion was allocated to construct Affordable Housing Units and Ksh 1.2 billion for the construction of Social Housing Units.
“To support the Nairobi Metropolitan Services in reversing urban indignity in Nairobi City County, Ksh 200.0 million has been recommended for the Nairobi Metropolitan Services Improvement Project and Ksh 118.7 million for construction of footbridges,” said the CS in his budget speech to the National assembly.
Other key allocations to the Housing, Urban Development and Public Works sector included Ksh 5.9 billion for the Kenya Informal Settlement Improvement Project-Phase II; Ksh 700 million for the construction of markets; Ksh 1.0 billion for maintenance of Government Pool Houses; Ksh 1.1 billion for the construction of Housing Units for the National Police and Kenya Prisons; Ksh 700.0 million for the Kenya Urban Programme.
Recently, Transport CS James Macharai pointed out that the Government has facilitated the construction of more than 200,000 housing units under the Affordable Housing Program, in line with the Big Four Development Agenda.
