Market News

Affordable housing raises Sh536m from first Nairobi project

ngara

Affordable housing project on Park Road, Nairobi. FILE PHOTO | NMG

bonface_img

Summary

  • The Park Road project whose construction started in April 2019 is the first low-cost housing development to be completed by the national government under the Big Four’s 500,000-unit Affordable Housing Programme.
  • The ministry plans similar projects in Shauri Moyo and Starehe, which will bring in another 8,000 units.

The State has raised Sh536.5 million in deposits from the sale of its 1,370 low-cost houses on Park Road in Nairobi, which feature one, two- and three-bedroom units.

The Park Road project whose construction started in April 2019 is the first low-cost housing development to be completed by the national government under the Big Four’s 500,000-unit Affordable Housing Programme.

“All the buyers have put the required 12.5 percent of the total cost of the units,” Housing and Urban Development Principal Secretary Charles Hinga told the Business Daily.

The low-cost houses consist of 546 three-bedroom units of 60 square metres selling at Sh3.55 million. There are also 260 three-bedroom units measuring 80 square metres each selling at Sh4 million each.

The government has also put up for sale 228 two-bedroom houses selling at Sh3 million, and another lot of 252 units selling at Sh2 million each. These houses target those earning up to Sh50,000 a month.

There are also 84 units of one-bedroom houses selling at Sh1.5 million, which target those earning about Sh20,000 a month.

“This project was completed within a record time. We are proud of the contractor and all the people who have seen its speedy success,” said Mr Hinga.

Individuals looking to buy the houses must register on the BomaYangu online portal, and are required to be Kenyan citizens with proven ability to buy via a transparent and accountable manner.

The buyer must then deposit 12.5 per cent of the amount based on the unit of choice.

The interested parties will also be required to commit how they will finance the remaining balance — either to pay cash or mortgage.

For those who cannot afford to pay cash, the national government has negotiated a reasonable mortgage deal with various banks, where people can go and inquire for a pre-approval for the balance. The new units come with social amenities including parking, rooftop gardens, running track, solar water heaters.

The ministry plans similar projects in Shauri Moyo and Starehe, which will bring in another 8,000 units.