Salaried Kenyans raise between Sh63 billion and Sh65 billion a year through the housing levy, Lands and Housing CS Alice Wahome has said.
The money goes towards the 75,000 affordable housing units, which are currently under construction in 40 counties.
Another 60,000 units are about to be started. The units have employed 160,000 Kenyans so far.
Wahome said the target of 200,000 units is likely to be achieved by February next year. The minimum number of units per county is 220.
“We have planned such that every constituency will have at least a minimum of 220 units. Overall, within the next three years, we should be able to achieve about 800,000 units. Our target is a million,” she said.
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These will be augmented by private investors who are also working on affordable housing units.
The CS spoke in Mombasa on Wednesday when she opened an exhibition and research workshop of the National Construction Authority.
Previously, the private sector was handling about 50,000 units per year but with the opening of space in the housing sector, the number is expected to rise beyond the government numbers.
This came two days after GulCap Real Estate launched another project, which will see 289 units developed in Nairobi.
The newest lifestyle development, 289 InCity Suites, will provide a range of studio apartments and duplexes in one-, two- and three-bedroom configurations.
Kamukunji MP Yusuf Hassan said the private sector has a golden opportunity to work with the government in Private Public Partnerships to kill two birds with one stone.
“Private investors like GulfCap can work with other private investors and government to come up with housing units like the 289 InCity Suites to bridge the housing gap in Kenya and also provide lifestyle that mixes both luxury and effectiveness for happier life,” Hassan said.
GulfCap Real Estate group chairperson Suleiman Shahbal and director Ahmed Bajaber said the private sector can create landmark projects that foster community growth and also help Kenyans get decent housing for dignified living.
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“With prices as low as Sh2.49 million, such projects can offer rare opportunities for investors and government to secure property in prime areas,” he said.
The 289 InCity Suites in Nairobi is an example of how private investors can augment the work of government in providing decent affordable housing for Kenyans.
It is located in a secure, fast-growing location, complemented by high-end amenities such as a clubhouse, sports courts and 24-hour security.
GulfCap Real Estate is behind the award-winning Buxton Point project.
Wahome said it is important for Kenyans to differentiate between social, affordable and market housing.
“Social means it is really quite supported by the government and it is more accessible in terms of price than affordable.
“The second is affordable housing and the third category is market, which you can get a good house at reasonably good price in comparison with the market prices,” Wahome said.
The CS said when the Kenya Kwanza regime came into office, there were 9,000 units of affordable housing being constructed.
“We would want a situation where the private sector is competing with the work we are doing. There are discussions with the private sector. We are supporting the private sector with incentives such as waiver of unnecessary taxes and duties to bring down the cost,” Wahome said.
In the Boma Yangu government portal, which is the gateway into the Affordable Housing Programme, there are 545,000 applications.
“That tells you that the demand is higher than the supply. It means even when we achieve our target of 200,000 units, we will still have a deficit of 345,000 units,” she said.
She expressed fear that once the affordable housing units are released to the applicants, the number of applications is likely to double.
The CS said the government is in the last stage of improvement of the Boma Yangu platform so that once one applies, it will allocate the house, tell the project, the pricing and the number of the unit one will be allocated.
