Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Limuru follows closely owing its proximity to neighbourhoods such as Runda, Rosslyn and Kitisuru which have occupants with higher purchasing power/FILE

Government

Treasury allocates Sh6.03bn to Housing, but Parliament wants cost drivers addressed

According to the Parliament Budget Watch 2018, Sh1.5 billion will go towards the construction of second phase of the 7,394 housing units for National Police and Kenya Prison Services/FILE

NAIROBI, Kenya, Sept 7 – The National Treasury has allocated Sh6.03 billion towards housing projects under the Big Four in the 2018-2019 financial year.

According to the Parliament Budget Watch 2018, Sh1.5 billion will go towards the construction of second phase of the 7,394 housing units for National Police and Kenya Prison Services.

At the same time, Sh1 billion will be used in the second phase of 440,000 affordable housing units while Sh2 billion will be used in the construction of social housing units.

Lastly, Sh1.5 billion will be used in the civil servants housing scheme, a mortgage which will benefit 1,220 government employees.

During the period under review, the government targets to construct 83,000 units targeting urban centers.

These include some 31,000 units in Nairobi and Naivasha under the presidential flagship program; another 12,000 units under the slum upgrading program.

The government also expects counties to boost the social housing project by securing land for at least an additional 40,000 units.

The projects are under President Uhuru Kenyatta Big Four Agenda where he promised to provide 500,000 affordable housing by 2022.

Parliament has however urged the government to address cost drivers in the real estate sector which include land, construction materials and design, documentation process and mortgage financing.

The PBO advises players to keep an eye on several indicators that include policies government will institute to lower the cost of building houses as well as mode of financing.

Advertisement. Scroll to continue reading.

“The houses should not be too expensive to build. This project is also best funded through the private sector and efforts should be made to identify private investors.”

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...