Housing minister Soita Shitanda during the 4th African ministerial conference on housing and urban development said the shortage of houses in towns [cities] would be best addressed through private-public partnerships initiatives by the government and private investors.
“The Cabinet has approved new regulations on public-private partnerships and we will harmoniously work to use these to develop housing projects,” he said in Nairobi during the opening of the fourth African ministerial conference on housing and urban development. The new laws on private-public-partnerships(PPPs) are awaiting approval by Parliament.
“The private sector holds a huge potential and we need to work with them to improve access to housing,” Mr Shitanda said.
Statistics indicate that Kenya has an annual housing need of about 210,000 units against an average supply of 50,000 houses while the urbanisation level is projected to hit 50 per cent by 2030 from 39.7 per cent in 2009. Lack of access to mortgages by majority of the population has been partly blamed for the housing crisis with large numbers of urban/cities families being forced to reside in informal settlements. The poor performance of the mortgage sector in Kenya has been blamed on lack of access to long-term funds, low incomes, credit risk and high interest rates as well as a large informal employment sector such as small-scale farmers, traders and others.
# Business Daily#