Hinga: 33,936 units under affordable housing plan constructed
Tuesday, September 28th, 2021 00:00 | 2 mins read
A total of 33,936 housing units under the Affordable Housing Plan (AHP) have so far been constructed through various government and private sector affordable housing projects.
The Principal Secretary , State department for housing and urban planning Charles Hinga said the government plans to construct another 136,742 in conjunction with AHP strategic partners.
He said the AHP project has had a multiplier effect on the economy, where for every $1 (Sh110) invested, up to between $1.5 (Sh165.6) and $3 (Sh331.2) has been induced in the economy.
“Every one housing unit can create three to five new jobs, and eight indirect jobs. Construction of housing is labour intensive.
Labour can capture up to 10.5 per cent of the value created by spending on affordable housing,” said Hinga.
Giving the example of the Park Road housing project, he said the Jua Kali Association secured Sh120 million contract and employed 10,000 people to manufacture various components such as doors for the project.
Hinga was speaking at Mwiki Kasarani yesterday, during the ground breaking ceremony of the Centum Real Estate housing project.
The PS said the AHP is expected to increase the gross domestic product (GDP) from real estate and construction sectors to 14 per cent from the current 7 per cent by 2022.
“When the AHP started, the cost of construction was Sh80,000 per square metre. Now, at Pangani and the other housing estates being built by the government, we are at Sh26,000 per square metre.
Part of the reason is that the private sector does not have to buy the land,” said Hinga. So far, 1,370 units in Park Road, Ngara have been completed and delivered, in addition to 250 in Kisumu, 152 in Machakos and 463 in Mavoko.
Ongoing projects at various stages of completion are Bachelors Jeevanjee Estated which will have 1800 units, Pangani Housing Project with 1,562 units, Buxton Point Project in Mombasa with 2150 units, Mukuru Housing phase 1 in Mombasa with 13,000 units and Clay City in Nairobi with 5,280 units.