Kenyan government to construct one million houses by 2023

18 January 2018

The Kenyan government is set to spend US$ 25bn in the construction of one million houses that are projected to be complete by 2023. This initiative will be made possible after Kenya partners with 35 private firms.

Transport Cabinet Secretary James Macharia confirmed the reports and said that the project corresponds to the affordable housing project that is one of President Uhuru Kenyatta’s big four action plans set to take effect soon.

Implementing the New Urban Agenda

”As a step towards implementing the New Urban Agenda, parliament has approved a number of facilitative policies which include the National Urban Development Policy, National Building Maintenance Policy and National Slum Upgrading and Prevention Policy,” said Macharia.

He further explained that parliament will soon enact the Urban Areas and Cities Act and that his ministry will develop sectionals papers and facilitate change of laws, especially on land utilization.

In regards to the above, the government has already procured some incentives to facilitate private sectors to invest in low income housing. Some of the initiatives include the reduction of corporate tax and scrapping of levies charged by the National Construction Authority (NCA) and the National Environment Management Authority (NEMA).

Another implementation that is yet to take place, is the negotiation between the national government and county governments to bring down single units houses in Eastlands for example. Most of these single unit houses serve a few people, hence their demolition will enable the construct of 16-20 storey buildings which will eventually serve more people.

Housing deficit

Currently, Kenya has an accumulated housing deficit of more than two million units. Current production is less than 50,000 units against the required 244,000 in different market segments every year.

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