President William Ruto launched the Affordable Housing Programme (AHP) with the goal of delivering housing on ownership terms for Kenyan citizens.
The government has the ambition to move from 30,000 mortgages to 1,000,000 mortgages with favourable ownership terms that have monthly payments of as low as Ksh5,000
Once complete, AHP projects will provide different house models for Kenyans and at different monthly rates and selling prices.
The Housing units are categorized into four as follows:
Social Housing Unit- This means a house designed for a person whose monthly income is below Ksh20,000.
An Affordable Housing Unit- This means a house targeting a person whose monthly income is between Ksh20,000 and Ksh100,000.
Affordable Middle Class Housing Unit- This means middle to high-income housing targeted at persons whose monthly income is over Ksh100,000.
Rural Affordable Housing Unit- This means a house under section 42 targeted at a person living in any area which is not an urban area.
Social Housing Unit
According to the State Department for Housing and Urban Development, the AHP projects will have three major typologies with the following minimum usable areas: 1 room (20m2), 2 room (30m2) and 3 room (40 m2).
Through the Affordable Housing Fund, the government will provide a social housing tenant purchase scheme with monthly costs varying depending on the type of unit.
A 1 room will cost Ksh3,200 monthly, 2 room Ksh4,800 and a 3 room Ksh6,400.
The interest rates from the Affordable Housing Fund will be fixed at 3 percent and tenures will be up to 30 years.
Also Read: How Housing Plan Has Evolved from Kibaki to Uhuru Eras & Ruto’s Quest to Fulfil the Vision
Here, the government will work with communities and leadership to form cooperatives and save for the deposit.
Generally, the selling price for the social housing units is: 1 room will go for Ksh840,000, a room will cost ksh1.26 million and a 3 room will cost Ksh1.68 million.
Besides, there are three other types of houses available under the social housing unit including a studio, 2 bedroom and a 3 bedroom.
A national tenant purchase scheme will be in place with monthly costs of Ksh5,200, Ksh10,400 and Ksh15,600 for a studio, 2 bedroom and a 3 bedroom respectively.
The interest rates will be fixed at 6 percent with tenures running up to 30 years and the government will work with Kenya Mortgage Refinance Company (KMRC) and participating banks to offer mortgages at interest rates below 10 percent.
The selling prices for the AHP housing units will be as follows: studio (Ksh960,000), 2 bedroom (Ksh1.92 million) and 3 bedroom (Ksh2.88 million).
Also Read: How Affordable Housing Will Benefit Police, Students, Traders & Hustlers
Rates for Middle-Class Units
There will be two major types of houses available under this category: 2 bedrooms (60m2) and 3 bedrooms (60m2).
The government will provide a national tenant purchase scheme with monthly costs of Ksh31,000 for 2 bedrooms and Ksh41,800 for 3 bedrooms.
However, the units will be sold for Ksh4.32 million and Ksh5.76 million for 2-bedroom and 3-bedroom respectively.
The interest rate will be fixed at 9 percent and tenures will be 30 years.
Rural Housing
Rural housing will have similar units as social housing projects but with bigger sizes. Here, 1 room will be 35m2, 2 room (60m2) and 3 room (75 m2).
The interest rates will be similar to middle-class housing units while the selling prices will be Ksh910,000, Ksh1.56 million and Ksh1.95 million respectively.
The State Department for Housing is already offering training on us of Interlocking Stabilized Soil Blocks (ISSBs) in building these homes.
The government will work with community groups to have enterprise models that can build these houses.
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