Politics and policy
High costs push dream of low-cost housing beyond reach
Kibera slums with new houses in the background. Rising cost of building materials has been identified as a major factor denying the masses proper housing. Photo/FILE
Posted Tuesday, March 9 2010 at 00:00
However, a multi-million shilling housing project expected to house 2,000 families by Jamii Bora, a microfinance institution in Isinya, Kajiado, looks set to navigate the tricky terrain.
Developers of the scheme say they have managed to lower the cost of construction while at the same time leveraging on savings to allow beneficiaries to claim ownership of the houses.
“The provision of low-cost housing is possible through access to social capital which does not attract the same return requirement as commercial capital,” says Frank Ireri, the managing director of Housing Finance.
The Jamii Bora plan is one of those that have tapped social capital touted as critical to the success of housing the masses.
Under Jamii, members save and borrow using colleagues as guarantors, thus removing the requirement of collateral, which remains a major barrier to accessing commercial mortgage.
In addition, the housing scheme has lowered the overall cost of construction through on-site production of building materials and the use of sweat capital — the actual involvement of the beneficiaries in the construction work.
The housing project covering 300 acres of land has been structured into eight phases; it targets 2000 housing units.
Limited access
“The houses we are building are meant to provide permanent and affordable housing to our members, improving their overall well-being and providing a decent life,” said Ingrid Munro, the founder and chief executive officer of Jamii Bora.
This is different from with government slum upgrading projects such as the Kibera Slum Upgrading Project (KENSUP), which was jointly undertaken with the UN Habitat.
The Kibera residents pay special rent for the houses with electricity, water and sewerage systems, markedly different from the one-room slum shacks.
Just like the previous Nyayo Highrise scheme which did not benefit the intended group, the KENSUP project is seen taking a similar direction bringing to question how effective such schemes are in the long run.
The ability to manage a balance between ensuring ownership in the long run and affordability remain elusive.
The Jamii Bora scheme allows members to access mortgage facility of Sh300,000 for a three-bedroom house and Sh495,000 for four bedrooms.
In the market, such units go for between Sh4 million and Sh10 million.
RSS