Old estates targeted in upgrade

DENISH OCHIENG | NATION Mr Jeremiah Njuguna cleans his gumboots outside some of the old houses in Shauri Moyo estate, Nairobi, which the county government wants to pull down and replace with new ones. 

In Summary

• The Cabinet approved the project in 2010 to meet the growing demand for housing in the city.
• The housing project is set to be a great relief to many people who cannot afford high mortgage rates. About 200,000 housing units are required every year in Kenya to meet rising needs, but only about 50,000 are constructed.

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Nairobi County will build low-cost houses on 2,000 acres where many dilapidated houses are currently located.

The estates targeted for upgrade are in Eastlands and include Bahati, Mbotela, Ziwani, Makongeni, Kaloleni, Jericho and Shauri moyo.

County Governor Evans Kidero said architectural designs would be done in collaboration with two universities, while the construction would tap into firms managed by the youth.

The project that is estimated to cost Sh43 billion under the public-private partnership (PPPs) is expected to provide 650,000 people with decent and affordable houses.

The houses will be sold to home hunters in the low- and- middle income segment that has mostly been neglected by developers because of low-profit margins.

The Cabinet approved the project in 2010 to meet the growing demand for housing in the city.

Mr Kidero was speaking during the opening of a Rafiki Deposit Taking Microfinance branch in Biashara Street Thursday.

“We intend to construct low-cost housing on 2,000 acres in Nairobi and we are in consultation with University of Nairobi and the Jomo Kenyatta University of Agriculture and Technology, who will provide architectural designs,” he said.

Mr Kidero added that several financial institutions would provide the required funds, among them Rafiki DTM.

“We will enter a memorandum of understanding where we finance the firms and you ensure payment for the projects undertaken by the firms owned by the youth,” Rafiki DTM chief executive officer Daniel Mavindu said.

The housing project is set to be a great relief to many people who cannot afford high mortgage rates. About 200,000 housing units are required every year in Kenya to meet rising needs, but only about 50,000 are constructed.

According to government statistics, only 16 per cent of Nairobi residents live in their own homes, with the majority in rental houses.