The Kenyan Housing Crisis: What You Need to Know
If you’re considering moving to Kenya or already live there and want a change, there are plenty of housing options to choose from. There will be many factors that affect the type of housing you choose, such as budget, location, and size. Here are a few to get you started.
Brief Overview Of The Housing Situation In Kenya
The Kenyan housing sector has shown tremendous growth over the years but still faces the huge challenges of a fast-growing population, rapid urbanization, and the lack of accessibility to decent and affordable housing.
This has often made demand for decent housing exceed supply in urban areas, with many Kenyans having no option but to seek shelter in informal settlements. This scarcity of affordable housing has also contributed to the rise of overcrowding, poor infrastructure, and inadequate living conditions.
The Kenyan government and private investors have made efforts toward solving these challenges by increasing investments in low-cost housing and large-scale real estate developments.
Importance Of Affordable Housing In Kenya
Housing affordability is one way through which the housing crisis in Kenya may be addressed. With an increasingly growing middle-class and rural-to-urban migration, the demand for affordable and quality housing is currently at an all-time high.
It ensures that even low- and middle-income families can afford decent living spaces without straining their financial stability.
Such developments help the Kenyan government to provide affordable housing that aims at creating sustainable communities with modern facilities.
Government Policies and Initiatives Promoting Affordable Housing
The Kenyan government has made notable efforts toward the promotion of affordable housing through various policies and initiatives.
Under the “Big Four Agenda,” the government has a target of at least 500,000 affordable homes by 2022 for both urban and rural populations.
The Kenya Mortgage Refinance Company (KMRC) and other financial institutions have been mobilized to offer favorable mortgage rates for homebuyers.
In addition, the government has come up with incentives for developers in terms of tax breaks and land allocation to encourage them to develop affordable housing projects.
These efforts are aligned with the Vision 2030 development blueprint, which envisions a sustainable and thriving real estate sector in Kenya.
Lending Structure for Home Purchases in Brazil’s Minha Casa Minha Vida Program: What Kenya Can Do!
Brazil’s housing initiative provides a useful comparison with Kenya’s efforts in affordable housing. The Minha Casa Minha Vida program offers subsidized loans at different interest rates according to income levels, attempting to make homeownership accessible to low-income families.
While Kenya’s may be different, the premise of providing cheap and affordable financing to homebuyers is the same. In terms of structure, Kenya has a similar lending structure via financial institutions like KMRC and an affordable housing bond to Brazil’s Minha Casa Minha Vida program, with interest rates adjusted for income levels.
By understanding and adapting successful strategies like these, Kenya can continue to push for more inclusive, affordable housing solutions that can better serve its population.
Types of Housing in Kenya
Here in this section, I will be discussing the types of housing that are available in Kenya. Read on…
Apartments:
When it comes to types of housing, property websites like Kenya Property Centre have a huge range of properties that they market on behalf of popular and well-known estate agents, with an easy filter system so you can find the property based on your exact requirements. Everything you need for house hunting is all in one place. Flats and apartments are a really popular option, as they are generally smaller than homes and easier to look after. There is also a huge range of choices within the apartment option, allowing you to find something that is perfect for you. This could be a self-contained living space with everything you need in one or two rooms or a larger apartment for a family.
Maisonette:
There is a difference between a house, a flat, and a maisonette. At the most basic level, a maisonette is a flat that covers two floors, whereas a flat covers one floor, and a house is its own contained building. Maisonettes often have their own private entrances, whereas flats share communal walkways and corridors. Maisonettes are a good middle ground between an apartment and a house, as they offer more room and freedom than a flat but don’t have the usual cost of a whole house.
Houses:
Owning a house is a significant milestone for many people. There are many options to choose from, and you can filter your search to match your requirements.
You may have a specific area in mind. Something that has excellent amenities and transport links or is after a particular style or size of the home. Kenya is one of the cheapest countries in which to live in Africa, and therefore, you might be able to stretch your budget further than you thought.
If you need a lot of space, for example, you have a family, pets, or work from home, a house could be the best option, as it could also be quieter than other more communal living options.
Buy vs Rent:
This is another important consideration when looking at accommodation. Both have their positives and negatives. You will need to weigh them up when deciding if you want to rent a place or buy one.
Budget is one of the key factors, as many people find it more affordable to rent. Renting can also be more flexible, as you generally have shorter contracts. This is excellent if you aren’t sure where exactly you want to settle down or what your future plans are.
However, if you want to customize your space, make alterations, and make a home your own, buying it can give you the freedom to do this.
Owning a home also allows you to put roots down somewhere and grow your family. There are plenty of different options available, which means you can find a housing option that fits your needs and requirements.
Challenges to Affordable Housing in Kenya
Despite the continuing efforts to enable access to affordable housing for Kenyans, quite a number of challenges impede this progress.
- Land Availability: The scarcity of land, especially in urban centers, makes the prices of properties high and, therefore, not conducive to affordable housing projects. The high cost of land makes affordable housing projects less financially viable for developers.
- High construction costs: The materials, labor, and technology used in construction are expensive, making it increasingly difficult to keep housing prices low. Such increasing costs are a major impediment to developing affordable housing options.
- Access to Financing: Most Kenyans struggle to access affordable financing for house ownership. Interest rates for mortgages often tend to be too high for families with low incomes, and thus, they cannot afford homes.
- Regulatory Barriers: Bureaucratic red tape, like slow approval processes for construction permits, holds up housing projects, driving up costs and hindering the supply of affordable housing.
- Limited Government Support: While the government has made efforts to support affordable housing through the Big 4 Agenda, the funding and resources put in place often are inadequate to handle the massive demand.
Future Trends in Housing in Kenya
The future of housing in Kenya looks promising, with several key trends shaping the sector:
- Smart Cities and Technology Integration: Fast growth in technology has been encouraging the creation of smart cities. This includes sustainable building practices, renewable energy sources, and technology-driven solutions like automation. These might further decrease the costs of housing in the long run.
- Affordable Housing Initiatives: The government’s focus on affordable housing is expected to increase. Some projects are aimed at providing thousands of low-cost units. Public-private partnerships are likely to play a critical role in these developments.
- Sustainable Housing: The shift towards more sustainable construction practices is gaining momentum. Green buildings, the use of recycled materials, and energy-efficient designs are becoming more prevalent, contributing to lower costs and a greener environment.
- Urbanization and Mixed-Use Developments: With the expected growth in Kenya’s cities, mixed-use developments integrating residential, commercial, and recreational spaces will become the norm. This may translate into more affordable housing options within such developments, reducing urban sprawl.
The Importance of Continued Efforts Towards Affordable Housing
The requirement felt by Kenya for affordable housing is acute. The population of this country is increasing at a high rate. More people are moving to urban areas. This raises the demand for housing. Sustained efforts towards providing affordable housing are important for:
- Poverty Reduction: Affordable housing improves livelihoods for low-income families. It provides better health, education, and economic opportunities. This reduces the level of poverty.
- Economic Development: The construction of affordable housing generates employment in construction and real estate. This enhances the economy and generates further opportunities for citizens.
- Social Stability: Proper housing leads to social stability. It prevents overcrowding, informal settlements, and social unrest in communities.
- Urban Planning: Affordable housing helps with urban planning. It ensures that cities can absorb growing populations without undue burden on resources.
Wrapping It Up!
In conclusion, affordable housing in Kenya remains a critical need amidst rapid urbanization and population growth.
Further efforts by the government, private investors, and financial institutions are required to overcome some of the challenges associated with land scarcity, high construction costs, and limited financing.
This will help Kenya build sustainable and thriving communities by making affordable housing a priority.
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All Comments
Katani plots for sale
10th Nov, 2021
Great Read. Thank you
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