Lands and Housing Cabinet Secretary Alice Wahome has announced that salaried Kenyans contribute between Sh63 billion and Sh65 billion annually through the housing levy, funding the construction of 75,000 affordable housing units across 40 counties. An additional 60,000 units are set to begin construction soon, which have already created jobs for 160,000 Kenyans.
Wahome expressed confidence that the target of 200,000 housing units will be met by February next year, with a minimum of 220 units allocated to each county. “We have planned such that every constituency will have at least a minimum of 220 units. Overall, within the next three years, we should be able to achieve about 800,000 units. Our target is a million,” she stated.
The initiative will be supported by private investors, who are expected to increase their contributions beyond the current annual production of about 50,000 units. This announcement follows the recent launch of a new project by GulfCap Real Estate, which plans to develop 289 units in Nairobi. The 289 InCity Suites will feature a variety of studio apartments and duplexes in one-, two-, and three-bedroom configurations.
Kamukunji MP Yusuf Hassan emphasized the potential for collaboration between the private sector and the government through Public-Private Partnerships (PPPs) to address the housing gap while providing quality living conditions.
“Private investors like GulfCap can work with other private investors and government to come up with housing units like the 289 InCity Suites to bridge the housing gap in Kenya and also provide a lifestyle that mixes both luxury and effectiveness for a happier life,” he said.
GulfCap Real Estate’s chairperson Suleiman Shahbal and director Ahmed Bajaber also highlighted the private sector’s role in creating landmark projects that contribute to community development and provide Kenyans with dignified housing options.
Lands and Housing Cabinet Secretary Alice Wahome highlighted the potential of projects like the 289 InCity Suites in Nairobi, where prices start as low as Sh2.49 million, to provide significant opportunities for both investors and the government to secure property in prime areas.
She noted that these developments exemplify how private investors can complement government efforts in delivering decent and affordable housing for Kenyans. The 289 InCity Suites is strategically located in a secure and rapidly growing area, featuring amenities such as a clubhouse, sports courts, and 24-hour security.
Wahome emphasized the importance of understanding the distinctions between social housing, affordable housing, and market housing. She explained that social housing is heavily supported by the government and is generally more accessible in price, while affordable housing provides a balance between cost and quality, and market housing offers good value relative to market prices.
Reflecting on the housing landscape when the Kenya Kwanza administration took office, Wahome noted that only 9,000 affordable housing units were under construction at that time. She expressed a desire for the private sector to compete with government efforts and mentioned that discussions are ongoing to support private investment through incentives such as tax and duty waivers, aimed at reducing construction costs.
The demand for affordable housing is evident, with the Boma Yangu government portal reporting 545,000 applications. Wahome indicated that even with the target of 200,000 units, there would still be a shortfall of 345,000 units. She anticipates that once affordable housing units are allocated to applicants, the number of applications could potentially double.
To streamline the application process, the government is in the final stages of enhancing the Boma Yangu platform, which will provide applicants with detailed information about their housing allocation, including project details, pricing, and unit numbers.
