Kenyan Govt Discloses Residents Will Pay KSh 2,800 Monthly for Bedsitters at Mukuru Housing Estate
- President William Ruto commissioned the new Mukuru Housing Estate Lot 1, Phase 1, comprising mostly bedsitters on Tuesday
- Housing PS Charles Hinga explained that the payment includes a KSh 1,000 service charge and a KSh 2000 insurance fee
- The government plans to construct 250,000 housing units to address the shortage of affordable houses countrywide
Japhet Ruto, a journalist at TUKO.co.ke, brings more than eight years of experience in finance, business, and technology, offering deep insights on economic developments in Kenya and globally.
Under a government rent-to-own agreement, more than 1,000 residents of Mukuru Kwa Njenga who have relocated into recently constructed affordable housing units will pay a total of KSh 3,000 monthly.
Source: Twitter
Why the Kenyan government settled on KSh 2,800
The payments are designed to be comparable to what many inhabitants in informal settlements were already paying, but with the added benefit of eventually owning the apartments.
This was announced by Charles Hinga, the Principal Secretary (PS) for Housing and Urban Development, on Wednesday, May 21.
"These are bedsitters. These new residents will pay KSh 2,800 per month, but it is not rent; it is rent-to-own. Part of this programme is that it gives you the right to own, and the programme is designed in such a way that it is mindful of your income. You will find that whatever they were paying for those shacks, they will pay an almost similar amount of money to come and they will own," Hinga explained in an interview on Citizen TV.
What's the service charge?
The PS explained that the payment includes a KSh 1,000 service charge, which is already heavily subsidised, and an additional KSh 200 for insurance.
“Through this housing programme, there are quite several subsidies, because, for example, in there, the service charge should be about KSh 3,000 per month, which is already more than what they will pay,” said Hinga.
He revealed that the government had intervened and offered a KSh 2,000 subsidy because Mukuru residents are among the most vulnerable in the city.
Source: Twitter
How many units were handed over in the first phase?
The first 1,080 apartments in the Mukuru Affordable Housing project were formally handed over by President William Ruto on Tuesday, May 20.
The PS reiterated that the housing programme seeks to address what he termed the "penalty of poverty," highlighting that essential services often cost significantly more for those living in informal settlements.
"Because they lack piped water, the villages in Mukuru spend 172% more for water than you and I do, according to a poll we conducted there. The majority of these connections are unlawful, and their electricity costs are more than 140% higher. They pay to use the restroom as well," Hinga noted.
How many units will the govt construct?
Earlier, Deputy President Kithure Kindiki said the country's yearly housing need is 250,000 units, whereas the market produces 50,000 units annually.
The government is working with the private sector to build 100 housing projects across 45 counties to address the shortage.
Kindiki disclosed that over half a million Kenyans had registered for homes under the Boma Yangu platform.
Proofreading by Jackson Otukho, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
