The Pros and Cons of the Affordable Housing Program

Figure 1: Apartment Buildings in Nairobi constructed under the Affordable Housing Program

Source: Kenyanwallstreet.com

Introduction

The housing agenda by the Kenya-Kwanza government is a less-known issue to many Kenyans but for those who reside in towns, those who work for the government, and those who are conversant with building and construction matters, the issue is a need to know. Here are some benefits and downsides of government involvement in provision of housing to its citizens.

Pros

1. The housing agenda is providing Kenyan citizens a pathway to permanent home ownership because the residential units are offered at affordable prices

2. The government is also guiding Kenyans on how to take mortgages and purchase the apartments

3. These building projects are being carried out in major towns in Kenya including Nairobi, Mombasa, Kisumu, and Nakuru among others. This means that most citizens in need of housing are well-reached

4. The housing agenda is mostly targeting the civil servants, that is, those who work for the government such as doctors, teachers, the police and other public servants

5. The police sector benefits from the agenda because there is upgrading of the existing old and dilapidated residential quarters and the building of new and better residences

6. The government through the housing agenda is providing investment opportunities to firms through the public private partnership (PPP) procurement system. Private developers get opportunities to build the houses and sell them to customers

7. During the project implementation, there are many job opportunities availed to the contractors and the construction project professionals.

8. In this housing agenda, you will find some programs that are focused on upgrading slums and provision of basic amenities centres eg. Hospitals and schools. Therefore the residents on the informal settlements are benefitting a lot from the housing agenda

Cons

1. After the completion of the residential buildings, private landlords who purchase the apartments through mortgages are renting them out to tenants. This creates a risk of returning to the old system of tenancy instead of ownership. In other words, some people might become permanent tenants of the government houses instead of owners

2. In most of these residential building projects, foreign investors and contractors are involved and that leaves the local property development companies and contractors with little or nothing to benefit from the government’s housing agenda

Conclusion

The housing agenda by the Kenya Kwanza government seems to resemble that of the old days where the government acquired land and build homes for government workers, railway workers, the police, etc. To me it is very simple; this whole agenda of providing housing to citizens seems to be aimed at providing government workers with a better place of residence and amenities so that they can improve their performance at the workplace. However, it is important to note that the housing agenda is now also including non-civil servants. In addition to that, the benefits seem to outweigh the downsides of the affordable housing program. So affordable housing agenda by the Kenya Kwanza government is a yes! The discussion regarding how other countries provide housing for its citizens will appear in the subsequent articles.