What needs to be addressed in the affordable housing plan

 

President William Ruto lays the foundation stone for the construction of the 2,384-unit Lumumba Estate Affordable Housing Project in Kisumu

Once upon a time, affordable housing was just a visionary concept. Today, it has become a critical national priority due to the high population density and rising cost of living.

Initially, the affordable housing idea focused on ensuring that each Kenyan could have access to decent living standards even with limited income earnings.

Over the years, the same quest is still ongoing but faces many challenges. Are we on the right track towards affordable housing and are these challenges redeemable?

World Bank reveals that Kenya currently faces a demand of 250,000 units of housing while the government can only supply approximately 50,000 housing units. 

Meanwhile, the total population of individuals living in poverty is 29.4 per cent while the unemployment rate is at 5.5 per cent.

One main challenge that threatens the success of the affordable housing initiative is that the demand for housing is higher than the current supply of units by the government.

Additionally, the cost of all this is higher than the income-earnings ratio of Kenyans.

This means while the initiative may be a great thought, in reality, many cannot afford it.

Additionally, there is little to no information on how the housing initiative is intended to function.

How will the houses be allocated? How much has everyone contributed so far? Why is there no statement of payment for contributors?

These are just but a few of the questions Kenyans are asking. The main issue however is that what was initially just a proposal has now been passed as a bill, turning it into a tax despite opposition.

Why are Kenyans asked to pay as tax now but still buy the houses later? 

Many are questioning why they are being taxed for a programme they may never benefit from, and why this initiative has been categorized as a tax rather than a direct investment or contribution to housing development.

The affordable housing agenda is undoubtedly an initiative we need very much.

However, for it to succeed, it is paramount that the government puts the needs of its people first. Were commend incorporating a more streamlined and transparent process that communicates the progress as we go on.

Kenyans should be aware of how much they have contributed and have a statement of payment.

Secondly, the government should address the issue of amenities being used.

Most of the land being used is public land. But what happens when another regime comes into power? Will ownership of already constructed houses change?

To address this, the government should encourage partnerships with the private sector in a bid to enrich the current economic state.

Partnerships such as buying land from private sector realtors can be very effective in building collaboration between the government and the real estate sector thus promoting economic growth.

So much time has been spent discussing the affordable housing agenda and how it will be implemented.

Kenyans understand the noble intentions of this initiative and many see how it can help offer decent housing standards.

However, the lack of clear and transparent communication, hasty implementations, and the imposition of the proposed bill as a tax continue to fuel disapproval from many.

Kenyans simply want to be heard, understood, and well-informed on how the initiative is being managed.

To build trust in its people, the government should address the legal challenges and find ways to make the initiative inclusive.

Kenyans are simply asking for clear communication, public engagement and participation, and clear record-keeping.

Moving forward, the government needs to build trust with its people.

CPA Sarah Wahogo is the CEO Username Investment Limited.

by SARAH WAHOGO