Investments in Kenya’s affordable housing programme is creating a multiplier effect with benefits that range from job creation, improved health and safety to increased household resilience being realised, the National Government Coordination (NGC) Secretariat says.

The National Government Coordination Secretariat Multi-Agency Team Leader Dan Ameyo who led the team to inspect exchequer-funded projects in Nakuru County said the affordable housing programme was designed to ensure that low-income earners were able to own homes through the National Tenant Purchase Scheme or rent-to-own payment options.

He said the affordable housing project was promoting economic recovery by linking micro, small and medium enterprises and Jua Kali sector as suppliers of various inputs such as hinges, doors and windows among others, to housing projects.

Ameyo observed that investments in affordable housing programmes were creating a multiplier effect where direct and indirect benefits to the country included job creation, improved health and safety and increased household resilience.

The NGC projects evaluation exercise comes even as the Ksh504 million worth affordable housing project in Bahati Sub-County in Nakuru takes shape, with the project said to be 85 per cent complete.

The 220 housing units Bahati Affordable Housing Project consists of 60 studio units, 20 one-bedroom units, 120 two-bedroom units and 20 three-bedroom units. The project was launched by President William Ruto in Bahati constituency on August 22, 2023.

The project, which is scheduled to be completed in June 2025 is part of plans by the government to construct more than 50,000 low-cost housing units in Nakuru County within the next 10 years.

Ameyo observed that to realise the delivery of adequate, decent, affordable and sustainable houses across the country without burdening the already overstretched national budget and debt levels, the government was extensively leveraging on private sector participation to fund the development of the projects.

The NGC multi-agency team chairman noted that Kenya is experiencing rapid urbanisation estimated at 3.4 per cent per year, and housing is a key social determinant of people’s health and overall quality of life.

He said that, due to rapid urbanisation the state came up with National Housing Policy 2016 and National Slum Upgrading and Prevention Policy 2016. The 2024 Draft Affordable Housing Regulations he said was expected to operationalise the Affordable Housing Act 2024.

The rapid urbanisation rate, Ameyo pointed out, was resulting in average national annual housing demand estimated at 250,000 units. He said the average national annual housing supply was approximately 50,000 housing units, leading to a deficit of about 200,000 housing units per year and a cumulative backlog of two million housing units.

“The Government initiated the Affordable Housing Programme that targets the delivery of decent and affordable housing to low and middle-income households and commits to deliver 200,000 housing units per annum, by activating projects across the Nation, as well as increase the number of mortgages from the current 30,000 to 1,000,000 with favourable ownership terms that have monthly repayments of as low as Ksh5,000,” he explained.

Nakuru is among 23 counties that have provided land for the affordable housing programme. It has been grappling with housing shortages for years with a shortfall of both residential and commercial units.

According to the 2024 Kenya National Bureau of Statistics (KNBS) report, Nakuru requires at least 10,000 housing units to meet the current demand. However, only about 3,000 units are available, creating a shortfall of 8,000 units.

Reports from the NGC indicates that the Ksh2 billion affordable 605 units in Bondeni within Nakuru Town East Constituency was 100 percent complete while another 220-unit project in Molo was at 85 per cent completion. 

The Bondeni housing project comprises 45 one-bedroom houses which are selling for Ksh1.55 million, 180 two-bedroom units which are going for Ksh3.25 million and 380 three-bedroom units which cost Ksh4.3 million per unit.

The affordable housing projects in Nakuru is said to have created employment for over 1500 residents, who include mechanical engineers, plumbers, masons, steel fixers, carpenters and welders. The project was also said to have economically empowered the locals as national and county governments have been awarding tenders for construction materials to small and midsize enterprises (SMEs) instead of importing them.

In Naivasha 2,000 units are being constructed on a 55-acre parcel of land along the Nairobi-Nakuru highway near GK Prisons targeting workers who earn between Ksh15,000 and Ksh150,000 per month.

According to official records though the annual demand in Kenya for affordable housing for the middle- and low-income earners was 170,000 units, a mere 1,000 units are built every year, a situation that has been worsened by official policy misalignments, outdated building code and low number of housing mortgages in the country.

The NGC team toured various projects in Nakuru including the Ngongeri Industrial Park, where Ms Ann Olubendi urged Kenyans to invest in the manufacturing sector, saying it has potential to drive industrialisation and economic prosperity.

She said the state encourages local and foreign investors to venture into this lucrative sector through the use of common manufacturing facilities being set up by the government at County Aggregation and Industrial Parks (CAIPs) and reiterated that such investments would reduce Kenya’s reliance on imports, create jobs, and foster prosperity.

Olubendi at the same time called on contractors overseeing construction of the multibillion Nakuru County Aggregation and Industrial Park (CAIP) at Ngongongeri Farm in Njoro Sub-County to complete works within stipulated timelines as it was aimed at transforming the Central Rift region into a major commercial hub.

She said that the government will ensure that the industrial Park that will host a variety of industries, including ICT hubs, energy-sector companies, engineering and construction firms and chemical industries, has all the support infrastructure such as power, water and the park ring road ready after which the investors will be allocated space and allowed to operate, as the spatial plan is ready.

The total cost of the Nakuru CAIP is Ksh500 million. The national government has already allocated Ksh116 million, while the county government is expected to pump in Ksh250 million.

Olubendi indicated that at its present stage, Kenya needs industrialization to establish itself as a nation that can achieve economic independence through job creation adding that the County Aggregation and Industrial Park (CAIP) initiative provides exceptional possibilities to lead economic evolution while promoting manufacturing operations alongside value addition and innovative initiatives.

She observed that if prioritised through proper funding and complete execution, CAIPs and SEZs will transform Kenya’s economy by creating thousands of jobs while improving its global market position.

Manufacturing represents 7.6 per cent of Kenya’s GDP, much lower than that of nations with established industrial systems. Due to the low establishment of local industries, the country has developed too much dependence on foreign imports, which generates trade deficits and restricts employment opportunities.

Through the CAIP initiative, Olubendi affirmed that counties would attain increased economic power to foster local development among multiple industrial locations. The industrial parks, she added, can operate as manufacturing and innovation centres that optimise resources based on specific county assets.

“Kenya’s industrialisation is not just an option. It is a necessity for sustainable economic growth and job creation. The CAIP programme is an excellent opportunity for Kenya to transform its manufacturing sector completely and attain economic independence,” observed Olubendi

The NGC team hailed the Jitume programme being implemented by the Rift Valley National Polytechnic (RVNP) that is intended to equip young Kenyans with digital skills.

The Jitume programme, a collaboration between the government of Kenya, Pathways Technologies Ltd and Konza Technopolis will train 10,000 young people in data analytics, data science, and software development over five years.

The programme focuses on equipping young people with essential digital skills, e-services and online opportunities, aiming to revolutionize digital literacy and create economic opportunities.

RVNP Principal Sammy Chemoiwa said the over 300 individuals who have already undergone training were working on various projects for international firms executing tasks that include labelling images and videos for machine learning algorithms as part of upstream Artificial Intelligence (AI) data building, and disclosed that they were earning between Ksh9,000 to Ksh20,000 per week.

 He said the initiative was part of RVNP’s mission to expand opportunities for the underserved through the digital economy in Kenya and helping the surrounding community lift itself out of poverty and build sustainable careers in the tech industry.

Chemoiwa said the digital economy has emerged as a transformative force globally and Kenya is well positioned to contribute to creating a more inclusive AI ecosystem where everyone has a chance to make a meaningful impact, with youth and women around the institution having a potential of making Ksh5 million per week by offering AI services.

• A Tell Media / KNA report / By Esther Mwangi

National Government Coordination (NGC) Secretariat team inspecting the Bahati Affordable Housing units.