Yatani secures affordable housing continuity with Kshs. 27B allocation

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Implementation of the Affordable Housing Programme initiated by President Uhuru Kenyatta is expected to continue after Treasury proposed Kshs. 27.7 billion allocation in the 2022/2023 budget.

The programme launched by President Kenyatta in 2017 which targets to deliver 500,000 housing units is now firmly set to continue when he leaves office after the general election slated for August 9, 2022.

The programme which was designed to provide affordable housing units to Kenyans was also envisaged to create additional jobs, provide a market for manufacturers as well as suppliers and raise the contribution of real estate and construction sectors to GDP according to National Treasury Cabinet Secretary Ukur Yatani.

“To achieve this, the Government has been implementing policy and administrative reforms targeted at lowering the cost of construction and improving access to finance for affordable housing. The Government has also mobilized resources to support construction of affordable housing units and social housing units,” said Yatani.

Of the total allocation, Kshs. 4.6 billion has been set aside to Kenya Mortgage Refinance Company (KMRC) for enhancement of the company’s capital as well as for on-lending to primary mortgage lenders, while Kshs. 8.7 billion has been set aside for construction of Affordable Housing Units.

Last month, KMRC raised Kshs. 1.4 billion from the first tranche of its Kshs. 10.5 billion Medium-Term Note on Nairobi Securities Exchange (NSE) in what it says will be used to blend its inventory of concessional funds and scale up operations.

“The Kenya Mortgage Refinance Company continues to play a leading role in the delivery of Affordable Housing in Kenya. I am pleased to note that since September 2020, KMRC has disbursed over Kshs. 2 billion to seven primary mortgage lenders and is currently processing an additional Kshs. 7 billion.

Additionally, Kshs. 1.2 billion will cater for the construction of Social Housing Units.

CS Yatani has also allocated Ksh 200 million for the Nairobi Metropolitan Services Improvement Project and Ksh 118.7 million for construction of footbridges.

Treasury has also allocated Housing, Urban Development and Public Works sector Kshs. 5.9 billion for the Kenya Informal Settlement Improvement Project-Phase II, Kshs. 700 million for construction of markets, Kshs. 1.0 billion for maintenance of Government Pool Houses, Kshs. 1.1 billion for the construction of Housing Units for the National Police and Kenya Prison Kshs. 700.0 million for the Kenya Urban Programme.

“In addition, Mr. Speaker, I have proposed an allocation of Kshs. 1.2 billion to support the Nairobi Bus Rapid Transport Project to offer an efficient and time saving public transport.”

The post Yatani secures affordable housing continuity with Kshs. 27B allocation appeared first on KBC.

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