Nakuru: Investments in the affordable housing program are creating a multiplier effect with benefits including job creation, improved health and safety, and increased household resilience, the National Government Coordination (NGC) Secretariat has indicated.
According to Kenya News Agency, the National Government Coordination (NGC) Secretariat Multi-agency team leader, Dan Ameyo, who led the team to inspect various exchequer-funded projects in Nakuru County, said the affordable housing program was designed to ensure low-income earners could own homes through the National Tenant Purchase Scheme or rent-to-own payment options.
Ameyo highlighted that the affordable housing project was promoting economic recovery by linking Micro, Small, and Medium Enterprises, and the Jua Kali sector, as suppliers of various inputs like hinges, doors, and windows to housing projects. He noted that investments in affordable housing programs were creating a multiplier effect where direct and indirect benefits to the country included job creation, improved health and safety, and increased household resilience.
The NGC projects evaluation exercise is ongoing even as the Sh504 million affordable housing project in Bahati Sub-County in Nakuru continues to take shape steadily, with the project reportedly at 85 percent completion. The Bahati Affordable Housing Project, consisting of 220 housing units, was launched by President William Ruto in Bahati constituency on August 22, 2023, and is scheduled for completion in June 2025.
Ameyo indicated that to deliver adequate, decent, affordable, and sustainable houses across the country without burdening the already overstretched national budget and debt levels, the Government was leveraging private sector participation to fund the development of the projects. He noted that Kenya had been experiencing increasing urbanization rates estimated at 3.4 percent per year, adding that housing is a key social determinant of people’s health and overall quality of productivity.
The rapid urbanization rate was resulting in an average national annual housing demand estimated at 250,000 units, with the average national annual housing supply approximately 50,000 housing units, leading to a deficit of about 200,000 housing units per year and a cumulative backlog of 2 million housing units. The Government initiated the Affordable Housing Programme targeting the delivery of decent and affordable housing to low- and middle-income households, committing to deliver 200,000 housing units per annum and increasing the number of mortgages from 30,000 to 1,000,000 with favorable ownership terms.
Nakuru is among 23 counties that have provided land for the affordable housing program, grappling with housing shortages for years with a shortfall of both residential and commercial units. According to the 2024 Kenya National Bureau of Statistics (KNBS) report, Nakuru requires at least 10,000 housing units to meet the current demand, with only about 3,000 units available, creating a shortfall of 8,000 units.
Reports from the NGC indicate that the Sh2 billion affordable 605 units in Bondeni within Nakuru Town East Constituency are 100 percent complete, while another 220-unit project in Molo is at 85 percent completion. The affordable housing projects in Nakuru have created employment for over 1500 residents, including mechanical engineers, plumbers, masons, steel fixers, carpenters, and welders.
In Naivasha, 2,000 units are being constructed on a 55-acre parcel of land along the Nairobi-Nakuru highway near GK Prisons, targeting workers earning between Sh15,000 and Sh150,000. Official records show that while the annual demand in Kenya for affordable housing for middle- and low-income earners is 170,000 units, a mere 1,000 units are built every year, a situation worsened by policy misalignments, outdated building codes, and low numbers of housing mortgages.
The NGC team also toured the Ngongeri Industrial Park, where Ms. Ann Olubendi urged Kenyans to invest in the country’s manufacturing sector, emphasizing its potential to drive industrialization and economic prosperity. She indicated that the State was encouraging local and foreign investors to venture into this sector through common manufacturing facilities set up by the government at County Aggregation and Industrial Parks (CAIPs).
Ms. Olubendi called on contractors overseeing the multi-billion Nakuru County Aggregation and Industrial Park (CAIP) at Ngongongeri Farm in Njoro Sub-County to complete works within stipulated timelines, aiming to transform the Central Rift region into a major commercial hub. The total cost of the Nakuru CAIP is Sh500 million, with the National Government already allocating Sh116 million, and the County Government expected to contribute Sh250 million.
She emphasized that the CAIP initiative offers exceptional opportunities to lead economic evolution while promoting manufacturing operations alongside value addition and innovative initiatives. Manufacturing represents 7.6 percent of Kenya’s GDP, much lower than nations with established industrial systems. The CAIP program aims to reduce Kenya’s reliance on imports, create jobs, and foster prosperity.
The NGC team also praised the ‘Jitume’ program, implemented by the Rift Valley National Polytechnic (RVNP), aimed at equipping Kenyan youth with digital skills. The program, a collaboration between the government of Kenya, Pathways Technologies Ltd, and Konza Technopolis, aims to train 10,000 young people in data analytics, data science, and software development over five years.
RVNP Principal Sammy Chemoiwa mentioned that over 300 individuals who have undergone training were working on various projects for international firms, executing tasks that include labeling images and videos for machine learning algorithms, earning between Sh9,000 to Sh20,000 per week.
Chemoiwa indicated that the digital economy is a transformative global force, and Kenya is well-positioned to contribute to creating a more inclusive AI ecosystem. The initiative aims to expand opportunities for the underserved through the digital economy in Kenya, helping the surrounding community lift itself out of poverty and build sustainable careers in the tech industry.