The government has refuted claims published by a local paper suggesting that there is low uptake for the Affordable Housing Program (AHP).
In a statement, the State House Spokesperson Mohamed Hussein stated that the story is not only mischievous but also deliberately misleading.
“We take note of a headline story published by the Daily Nation today, August 6th, 2024, titled ‘Puzzle of Ruto Housing Projects,’ which inaccurately suggests there is a low uptake for the Government’s Affordable Housing Program (AHP), with government agencies allegedly stuck with stocks of unsold units.” Stated Hussein.
He noted that the reporting in the media is largely anchored on the Auditor General’s audit report that focused on housing projects that were designed and launched well before President Ruto assumed office in September 2022 and are, therefore, not in any way related to the AHP.
He said, “None of the housing projects listed in the newspaper story fall under the AHP.”
Hussein noted that the Affordable Housing Program, did not emerge without clear planning and foresight.
“It was articulated and outlined in the Kenya Kwanza manifesto, noting that it fulfills the constitutional obligation that enumerates housing as one of the basic economic and social rights in Article 43(b), which states that everyone has the right to “accessible and adequate housing, and to reasonable standards of sanitation.” He stated.
The Statehouse spokesperson stressed that the story grossly overlooks the fact that the Affordable Housing Program was designed differently from previous housing programs, with specific policy interventions to lower the costs of housing significantly to ensure affordability for ordinary Kenyans.
Adding that such interventions include access to public land, provision of free last-mile services like sewerage, electricity, water, and internet, and exemption of all construction inputs under AHP from value-added tax (VAT).
“These interventions have enabled the National Housing Corporation (NHC), as one of the implementing agencies of the AHP, to sell units at between Ksh 1 to 3 million, compared to the previous high of between Ksh 7 and 8 million.” Hussein noted.
He said, contrary to the assertions in the story the uptake for units under AHP is exceptionally high citing that the Government demolished 39 units of old houses in Park Road, Nairobi, and replaced them with 1,370 affordable units, all of which were sold out within 90 days.
“To illustrate the huge demand for affordable housing, when half of the 1,370 units at Park Road were offered to members of the public, over 33,000 Kenyans paid deposits of at least 10pc. Most of those who missed out have not asked for a refund of their money and are instead waiting to be allocated other units under the AHP.” He noted.
Hussein explained that the story also claims that six years since the Boma Yangu initiative was started, it has failed to gain traction and that only 30,000 Kenyans are saving to own houses through it.
“This is a blatant lie. As of today, August 6th, 2024, there were 531,943 Kenyans saving over Ksh 2.255 billion under the Boma Yangu initiative. This information is publicly available, and one wonders why and how a reputable media house would deliberately choose to mislead the public.” He stated.
“Since September 2022, 103,000 affordable housing units have been launched and are in various stages of construction across the country, directly and indirectly creating 160,000 jobs for the Kenyan people and thousands more through opportunities for MSMEs in the supply chain.” Hussein explained.
He reiterated that despite the fact that previous government housing programs were not directly aligned with the Affordable Housing Program, the Kenya Kwanza Administration is actively working to review and improve the uptake of such programs citing the case of NHC projects quoted in the story.
“It is true that the project launched in 2013 proved to be expensive at a cost of Ksh 7 million per unit, prompting a low uptake.” He said.
Hussein said the 6 since converted this to a Tenant Purchase Agreement (TPS) and has since realized improved uptake.
“Also highlighted in the story is the Shimo La Tewa project, whose construction began in 2016 and stalled, but the Government has since completed the project, a fact deliberately missing from the story.” Hussein said.
Adding that: “The Voi Pool Housing which started in 1988 and stalled in 2012 under the Public Works department, has also been taken up under the AHP and will soon be completed under phase I and II to deliver 320 units.”
He clarified that the Kenya Development Corporation Housing units mentioned in the new story, constructed between 2011-2015, does not fall under the Affordable Housing Program noting that it is a housing investment scheme under the State Corporation.
