Kenya? growing urban population faces affordable housing shortage
Real Estate

Kenya? growing urban population faces affordable housing shortage

In the densely populated Kibera neighborhood of Kenya's capital, Jacinter Awino and her family of six live in a small tin house. Awino dreams of moving to a more permanent dwelling under the government's affordable housing plan but struggles to afford the $3,800 purchase price for a one-room government house. Her current tin home, built for $380, lacks basic amenities like a toilet and running water.

"The government houses seem like a dream for us, but our incomes just don't allow it," Awino said.

The Kenyan government has a plan to build 250,000 houses annually to address a housing deficit estimated at 2 million units by the World Bank. This initiative, launched in 2022, has yet to report on the number of completed houses.

Urban areas in Kenya are home to about one-third of the country's 50 million residents. Of those living in urban areas, 70% reside in informal settlements lacking basic infrastructure, according to UN-Habitat. Some urban Kenyans have moved into a government housing project on the outskirts of Nairobi, where one-bedroom units sold for $7,600 last year. Felister Muema, a 55-year-old former caterer, paid a deposit of about 10% through a savings plan and is expected to pay off the balance over 25 years.

"This is where I have started living my life," Muema said. "If I do something here, it is permanent. If I plant a flower, no one will tell me to uproot it. This gives me life."

Experts emphasise the need for changes in construction and financing to meet Kenya's housing deficit. "We cannot rely on the traditional mortgage route," said Ishaku Maitumbi, head of UN-Habitat's East Africa division. He suggested a cooperative savings system popular among Kenyan businesses.

Emerging technologies like 3-D printing for home construction are being explored. This method, which uses a machine to layer special mortar to form concrete walls, can reduce building time significantly compared to traditional brick and mortar. 14Trees, a company using this technology, has built a showcase house in Nairobi and 10 houses in Kilifi County. Francois Perrot, CEO believes this technology can address the housing shortage but acknowledges it will take time.

"If we want to clear that backlog, we need to build differently, at scale, with speed, and using low-carbon materials. This is what construction 3-D printing makes possible," Perrot said. However, the cost of 3-D printed homes remains high, with a two-bedroom house priced at $22,000 and a three-bedroom house at $29,000. Perrot asserted that local production of printers and mortar could help reduce costs.

Architect Nickson Otieno, founder of Niko Green, a sustainability consulting firm, sees great potential in new technology but notes its limitations. "It will still take a long time for it to compete with brick and mortar," he said. "Brick and mortar allows anyone to build their house anywhere, access materials, find tradesmen, and plan costs."

Financing remains a significant challenge. In June 2023, Kenya's parliament passed a finance law introducing a housing tax of 1.5% on gross income to fund affordable housing. This law is being challenged in court, with critics arguing it is discriminatory as it applies only to those with formal employment. If rejected, the government will need to find alternative funding sources.

The housing tax has contributed to discontent among young people, leading to protests and the storming of parliament. More than 20 people were killed as police opened fire. President William Ruto has defended the tax, stating, "We have said that affordable housing, social housing is a right."

(Source: ET & AP)

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In the densely populated Kibera neighborhood of Kenya's capital, Jacinter Awino and her family of six live in a small tin house. Awino dreams of moving to a more permanent dwelling under the government's affordable housing plan but struggles to afford the $3,800 purchase price for a one-room government house. Her current tin home, built for $380, lacks basic amenities like a toilet and running water. The government houses seem like a dream for us, but our incomes just don't allow it, Awino said. The Kenyan government has a plan to build 250,000 houses annually to address a housing deficit estimated at 2 million units by the World Bank. This initiative, launched in 2022, has yet to report on the number of completed houses. Urban areas in Kenya are home to about one-third of the country's 50 million residents. Of those living in urban areas, 70% reside in informal settlements lacking basic infrastructure, according to UN-Habitat. Some urban Kenyans have moved into a government housing project on the outskirts of Nairobi, where one-bedroom units sold for $7,600 last year. Felister Muema, a 55-year-old former caterer, paid a deposit of about 10% through a savings plan and is expected to pay off the balance over 25 years. This is where I have started living my life, Muema said. If I do something here, it is permanent. If I plant a flower, no one will tell me to uproot it. This gives me life. Experts emphasise the need for changes in construction and financing to meet Kenya's housing deficit. We cannot rely on the traditional mortgage route, said Ishaku Maitumbi, head of UN-Habitat's East Africa division. He suggested a cooperative savings system popular among Kenyan businesses. Emerging technologies like 3-D printing for home construction are being explored. This method, which uses a machine to layer special mortar to form concrete walls, can reduce building time significantly compared to traditional brick and mortar. 14Trees, a company using this technology, has built a showcase house in Nairobi and 10 houses in Kilifi County. Francois Perrot, CEO believes this technology can address the housing shortage but acknowledges it will take time. If we want to clear that backlog, we need to build differently, at scale, with speed, and using low-carbon materials. This is what construction 3-D printing makes possible, Perrot said. However, the cost of 3-D printed homes remains high, with a two-bedroom house priced at $22,000 and a three-bedroom house at $29,000. Perrot asserted that local production of printers and mortar could help reduce costs. Architect Nickson Otieno, founder of Niko Green, a sustainability consulting firm, sees great potential in new technology but notes its limitations. It will still take a long time for it to compete with brick and mortar, he said. Brick and mortar allows anyone to build their house anywhere, access materials, find tradesmen, and plan costs. Financing remains a significant challenge. In June 2023, Kenya's parliament passed a finance law introducing a housing tax of 1.5% on gross income to fund affordable housing. This law is being challenged in court, with critics arguing it is discriminatory as it applies only to those with formal employment. If rejected, the government will need to find alternative funding sources. The housing tax has contributed to discontent among young people, leading to protests and the storming of parliament. More than 20 people were killed as police opened fire. President William Ruto has defended the tax, stating, We have said that affordable housing, social housing is a right. (Source: ET & AP)

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