Nyong'o launches Kisumu's Sh3.8bn affordable housing project

Kisumu Governor Anyang' Nyong’o’s ambitious plan for affordable housing has taken off with the launch on Wednesday of 1,200 housing units under the Sh3.8 billion Anderson Ofafa housing project.

Prof Nyong’o was joined by the Nation Media Group CEO Stephen Gitagama at the unveiling of the ambitious housing plan.

The Governor and Kisumu City Manager Abala Wanga however accused the National Housing Corporation (NHC) of standing in the way of the rollout of affordable housing plans in Kisumu County.

Speaking at the launch event also attended by United Nations Conference on Trade and Development (UNCTAD) Secretary General Mukhisa Kituyi, Prof Nyong’o said such affordable houses are where essential services workers go to sleep when their day’s work is done, hence his determination to see it materialise for Kisumu residents.

“It is a human rights issue,” he said.

Anderson Ofafa affordable housing project will be developed by Laptrust under the county pension fund, in collaboration with the County Government of Kisumu.

The project, to be located along Ngumbi Road in Kisumu, is designed in line with both the national government's and Kisumu county government's affordable housing agenda.

County Pension Fund Group Managing Director Hosea Kili gave a breakdown of the project, which will have about 108 one-bedroom units, which will be sold at an introductory price of Sh1.5 million, exclusively to former residents of the estate, while those from outside will have to purchase at market rates.

The project will see the construction of 714 two-bedroom housing units, which will go for Sh2.5 million each.

There will also be 96 three-bedroom houses going for Sh3.5 million each while special premium two-bedroom and three-bedroom house units will go for Sh3.5 million and Sh4.5 million respectively.

Sixty per cent of the seven-acre parcel of land remains green and will be landscaped for a green experience for residents.

There will also be 92 shops which will be offered to small-scale traders who were living within the estate, and a commercial parking lot that can take up to 1,000 vehicles.

Governor Nyong’o took issue with NHC’s opposition to the development of Makasembo affordable housing project over an ownership tussle, saying it is time the traditional housing agency gave way to pensioners to put up affordable houses.

Affordable housing

“The days of NHC are over. Time has come for pensioners to build our own houses,” he said.

The Kisumu governor said his administration appreciates that housing is an urbanisation challenge.

“To buttress the presidential policy on affordable housing, we have put a number of measures in place. Generally, we have resolved to focus on creating an enabling environment to investors in affordable housing and we will put in place requisite structures to ensure this happens,” he said.

Mr Gitagama, who was the chief guest at the launch, urged Kisumu residents to take advantage of the upcoming project, promising that NMG will keenly follow up on progress and keep the developers on their toes according to what was promised.

He lauded Governor Nyong’o’s effort for low income earners, stating that it will go a long way in changing the landscape of the growing Kisumu economy, which is in line with the Kenya government’s grand housing plans.

“The Constitution of Kenya 2010 and the National Development Plan, Vision 2030 Strategy, targeted the provision of 200,000 housing units annually for all income levels. However, the production of housing units is currently at less than 50,000 units annually, well below the target number, culminating in a housing deficit of over 2 million units, with nearly 61 per cent of urban households living in slums,” he said.

The NMG CEO cited high interest rates on property acquisition and high cost of land, economic uncertainty and government policies that affect demand and prices of property as some bottlenecks in ensuring affordable housing in Kenya.

He also cited socio demographics where most projects undertaken by developers focus on upper middle class and high net worth individuals, locking out average income earners.

“There is a housing crisis and an overwhelming need for affordable housing and it’s critical that people are able to live in a home that they can afford,” he said.

The NMG CEO noted that financial institutions prefer the salaried formal sector, to the disadvantage of the informal sector individuals.

“Financing has also been made harder as institutions prefer to finance projects that they have been involved in throughout the project, ignoring upcoming developers who are embracing low cost methods of construction,” he said.