NAIROBI, Kenya, Jan 16 – About 300 Kenyans have met the 12.5% threshold which is the bare minimum for one to qualify for a housing unit at the Park Road housing development in Nairobi.
228 units will now be up for grabs after the Chinese contractor, China State Construction Engineering handed over the homes to the Kenyan government, ready for occupancy yesterday afternoon.
Principal Secretary, Housing and Urban Development Charles Hinga says the period to buy a unit is still because the allocation process is set to begin.
“We have kicked off the selling process, we will share the account details, but we already have an MPESA USSD which is *688#. One can also visit the Boma Yangu website, register and start contributing,” said Hinga.
He added that they will soon announce the interest rate for the 15-year mortgage plan under Kenya Mortgage Refinance Company which the finance institutions working with the government can use to support the tenants.
“This will be a single-digit mortgage and it is fixed so even if the interest rate changes the borrowers will still pay the same amount as loan repayment,” said PS Hinga during the handover ceremony at Park Road.
For the individuals who will not qualify for a mortgage, can register for a tenant purchase scheme.
“The tenant purchase scheme is a good way for becoming a homeowner where one will get an interest of 7 percent for over 25years which is the period to pay,” he added.
A computer ballot-based process will be used to allocate the house with the aim of eradicating attempts of human intervention.
The houses are part of the 1,370 Phases One units under construction at Park Road.
Each of the two-bedroom houses under phase one, on 40 square metres will be sold at Sh2 million, the one-bedroom units on 20 square meters are going for Sh1 million while the 3-bedroom unit on a 60 square meters will cost Sh3 million.
The affordable housing scheme, which seeks to deliver 500,000 houses countrywide in five years, allows Kenyans to register for free on the Boma Yangu platform.
One gets to share their personal details such as employment status, household particulars and preferred area of residence.
After registration, an assessment is undertaken to verify the details provided and upon completion the potential buyer will then be allocated a unique identification number which they will use to make their contribution to their account in the housing fund.