HF unveils Sh1.6m home designs for low income earners
Housing Finance managing director Frank Ireri (right) with board member Shem Ogot (left) and Lands director of administration Ibrahim Hussein at the launch of over 50 building solutions for the low-end market at the Sarova Stanely in Nairobi on Wednesday. Photo/Diana Ngila
What you need to know:
Housing Finance said that the price would cover professional fees of architects, project managers, quantity surveyors, legal advisers, engineers and consultants.
To benefit, however, borrowers will need to have their own land.
The firm is conducting a research on new materials and techniques to further cut the costs of building using the new designs.
Housing Finance has introduced new housing designs that will help land owners build homes at a cost of Sh1.6 million per unit.
The listed lender said that the price would cover professional fees of architects, project managers, quantity surveyors, legal advisers, engineers and consultants.
To benefit, however, borrowers will need to have their own land.
Housing Finance chief executive Frank Ireri said that the firm was conducting a research on new materials and techniques to further cut the costs of building using the new designs.
“If well managed, self-building should save you between 20 to 30 per cent off the price of a similar ready-built home,” said Mr Ireri.
Construction of the new Makao houses will take between three and nine months either in phases or at one go. Buyers will also have a choice of furnishings.
The prohibitive cost of land, however, has locked out middle and low income earners from home ownership.
Annual demand is estimated to be 150,000 units annually but at best the market can only supply 50,000 units.
The Ministry of Land said that it plans to partially plug this deficit over the next three years by supplying 300,000 units through public private partnerships (PPPs) where land, finance and other resources will be made available to developers.
Lands Cabinet Secretary Charity Ngilu said that the planned PPPs have already begun in Nairobi County.
“This will be realised through collaboration with county government and private sector players who will mobilise resources including technology and finance. This commences with construction of 6,200 housing units in Nairobi County which were advertised this year and evaluation is ongoing,” said Mrs Ngilu.
Nairobi County recently said that it plans to unlock idle land in the city for development by recognising share certificates as genuine proof of land ownership.
Owners with certificates but no titles have avoided developing plots due to the fear of building houses that are vulnerable to demolition by the government.
Machakos County has also signed agreements with investors in 2013 where it would provide free land to developers.
Housing Finance has previously announced that it would partner with county governments through the joint venture model which has proved popular with private land owners.
“The firm is also in advanced discussion with the county governments for major towns (Nairobi, Nakuru and Kisumu) for construction of affordable housing under this concept,” said a coverage note by the firm by Old Mutual Securities.
