A Strategic Partnership
In a significant move aimed at bolstering the housing sector, the Kenyan government has inked a groundbreaking deal with Shelter Afrique, a leading Pan-African housing developer. The agreement, valued at Sh1.5 billion, is poised to facilitate the sale of apartments and maisonettes to senior civil servants, addressing the longstanding challenge of unsold units.
Addressing Market Challenges
Despite Kenya's substantial stake of 18.59 percent in Shelter Afrique, disclosed as of December 2022, several properties have languished on the market for years. Notable among these are units located in various developments including Everest Park in Athi River, Nakuru Meadows, Translake Estate in Kisumu, Serene Valley in Rironi, KMA Mtwapa, and Pine City in Machakos. The collaboration with the government aims to alleviate this issue by offering these properties to eligible members of the civil service.
Facilitating Access to Housing
Under the terms of the agreement, apartments and maisonettes priced from Sh2.65 million to Sh19 million will be made available to Members of Parliament, judicial officers, employees of State corporations, and constitutional commissions. Eligible individuals can apply for government-backed financing to facilitate their purchase. This initiative underscores the government's commitment to promoting homeownership among civil servants while addressing the housing deficit in the country.
Government-backed Financing
Mr. Charles Hinga, Principal Secretary of the State Department for Housing and Urban Development, highlighted the government's support for the initiative. In a letter dated February 14, 2024, Mr. Hinga outlined the financing options available, including housing mortgage schemes and independent public mortgage schemes. He also underscored the role of the Kenya Mortgage Refinance Company (KMRC) in providing affordable long-term financing at single-digit interest rates, thereby enhancing the accessibility of mortgage loans for prospective buyers.
Unlocking Growth Opportunities
The collaboration between the government and Shelter Afrique holds significant potential to revitalize the housing market and spur economic growth. By facilitating the sale of unsold units and providing accessible financing options, the initiative addresses key challenges facing the sector, including high-interest rates and stiff competition from other developers. Moreover, it underscores the government's commitment to fostering affordable homeownership and driving sustainable development across the country.
Paving the Way for Affordable Housing
As Kenya strives to meet its housing needs and promote socio economic development, partnerships between the public and private sectors are crucial. The collaboration between the government and Shelter Afrique exemplifies this synergy, offering a blueprint for addressing market challenges and expanding access to affordable housing. With concerted efforts and innovative solutions, Kenya can build a brighter future for its citizens while laying the foundation for inclusive growth and prosperity.
