[quote=obiero]Habari ndio hii https://www.the-star.co....to-sh3-million_c1747121[/quote]


Why Can't the Gaarment focus on Big Three; Health, Food Security and Job creation.
The Govt should focus on Infrastructural development, for example, good roads, Reliable power, Water supply, working sewerage system, security etc Instead of HOUSING,which can be done by individual investors.

There is a question that no one is yet talking about. What is the likely effect of injecting so many extra housing units into a struggling real estate sector?

Don't get me wrong, I am not against the idea. But we are seeing a lot of companies struggling to offload houses especially on the upper middle and upper class segments. And now Uhuru is about to take the middle and lower middle class off the table too.

Could this finally burst the speculation buble that so many have spoken about?

@Obiero, I don't get it if the demand is there why did you stop your construction(congrats by the way good stuff)? Can the lower end afford your estimated rent for you to recoup your costs?

Lower end is in need of social housing. From the documentation GoK is building the social housing in Kibera, Kiambiu etc while private sector will cater for the emerging middle class through PPP. Some of the projects look like the ongoing civil servant housing scheme lumped in for PR purposes.

GoK has already done these initiatives before with little impact on the market e.g Umoja, Jericho, Dandora. The impact on real estate will only be short term for the benefit of middle class.

Most of government social housing projects even in the US, UK end up being crime-infested, dilapidated structures or high-rise slums. They are segregated in terms of income concentrating poverty in an area. Politicians with an eye on next elections don't give much thought to these projects and the effects are felt a generation away(like the projects in US). A mixed income approach would have been more ideal something close to what Tatu city is trying to achieve.

Good points. But the effect of the projects you cite was not negligible. Initially touted as housing for the poor - they ended up benefiting the middle class. The real estate sector went through a depressed period in the late 90's (as did the wider economy of course). I suspect the coming on stream of massive housing stock in the 80's/90's; Dadora, Umoja, Nyayo Highrise (to an extent Buru) contributed to this state of affairs. I have no evidence though.

Finally considering that 600,000 is still too high for the majority of our people to afford, should we relay tout this as a solution to the housing problem?

Yes, A 600K purchased under the TPA for 25 years with an interest rate of 5% is aprox 4K every month while a 3M under TPA for 25 years is less than 18K every month