How can affordable housing help Kenya grow?

Article 43 (1) (b) of Kenya’s Constitution, which states that all citizens have the right to a decent degree of cleanliness as well as accessible and adequate housing, establishes the right to housing.

Kenya, meanwhile, continues to face a substantial housing supply and demand mismatch.

With an expected 50,000 unit supply and a 250,000 unit yearly demand for housing, there is an 80 percent shortage, or two million units, in housing.

A closer look at the country’s housing situation reveals that, in general, the lack of inexpensive and decent housing, the low rate of urban home ownership, and the prevalence of informal housing are the main features of the housing market.

According to studies, only 2% of formally built homes are thought to be aimed at lower-income families, leaving roughly 65% of urban Kenyan families to deal with informal settlements.

The Kenyan housing market suffers a complex collection of interrelated problems, including high land and housing unit prices, high incidental charges (such as legal and stamp tax), trouble registering properties, and restricted access to long-term, cheap financing.

Low to middle income earners are disproportionately impacted by these difficulties.

Despite this, inexpensive housing has enormous potential that, if properly utilized, may propel the nation’s economic growth and create a wealth of job opportunities.

Kenya has the capacity to open up affordable housing for the country as a whole.

A more prosperous economy results from a healthier population.

A significant socioeconomic factor that affects people’s productivity levels and general health is housing.

Poverty has been shown to severely limit people’s alternatives, which is why it is closely associated to a variety of acute and chronic health conditions. It has a significant impact on a person’s mental and physical wellness.

In addition, exposure to other issues including subpar sanitation and security in informal settlements reduces people’s capacity for productive labor, which in turn lowers productivity levels.

However, people are much less likely to experience risks related to an informal settlement lifestyle when they have access to high-quality, inexpensive housing options.

Additionally, the expense of treating ongoing health problems brought on by substandard housing becomes disposable income and can be put toward furthering one’s economic independence.

Investment in affordable housing stimulates the economy and creates jobs.

Home ownership is a potent tool for generating wealth and improving people’s standard of living.

Therefore, it has been demonstrated that making investments in affordable housing have a multiplier effect, with direct and indirect advantages for the nation including the development of jobs, enhanced health and safety, and higher household resilience.

For resilient middle cities, affordable housing

Kenya has seen an increase in the number of people moving towards metropolitan areas in quest of better prospects, with this rate of urban sprawl estimated at 3.4% annually.

Stakeholders have been encouraged to work together and adopt suitable measures to promote the implementation of affordable housing laws in order to meet the continuously expanding population as a result of the faster urbanization and urban transformation.

As a result, Kisumu and Mombasa, two of Kenya’s intermediate cities, continue to see the construction of new, cheap homes.

Due to this, the cities are now globally recognized, able to attract top-notch conventions from around the world, and as a result, generate income for the nation.

Future investment prospects that look promising

Purchasing inexpensive housing offers a chance to reduce child poverty.

One of the long-term strategies to generate generational wealth, boost economic growth, and promote healthier societies is to provide children with a better, more dependable, and more egalitarian road forward.

Giving younger generations the means for social mobility goes beyond only making a moral case; it has also been demonstrated to boost local economies.

Growing up with such empowerment increases the likelihood that children will become responsible, successful adults who aren’t afraid to give back to their communities.

Supporting programs for affordable housing is ultimately an investment in the health of our communities. It would be wise for all parties involved in Kenya’s supply chain to focus their efforts on the creation of affordable homes.

Because I think homes are the foundation for everything in life, the main goal should be to give families safe and stable housing.

KMRC offers cost-effective mortgage financing.

In Kenya, the formal housing financing industry has a long history of exclusivity and conservatism. The majority of developments have emphasized quick, modest loans. But things are starting to shift.

In order to enable more individuals to buy homes, the Kenya Mortgage Refinance Company (KMRC) was established with the primary objective of providing long-term loans to primary mortgage lenders

KMRC has stepped in to address one of the major issues plaguing the market for affordable housing—a lack of accessible long-term financing.

As a result, it is resolving the long-term funding restriction impeding the expansion of the mortgage market and lowering the price of residential mortgages.