The rising cost of
construction, coupled with the high cost of finance, has made housing
unaffordable to the majority of low- and middle-income earners, despite
efforts to lower costs.
And while
private developers blame unfavourable mortgage interest rates imposed by
banks, land owners and government authorities for the deficit, they are
in turn accused of side-lining these segments in favour of the
lucrative middle- and high-end market.
It
is this disparity that has seen the State, through the National Housing
Corporation (NHC) and mortgage lender Housing Finance, devise ways of
providing houses for this neglected majority.
NHC
has over the past decade sought to provide affordable housing for all
segments of the market, a move that saw the birth of an expanded
polystyrene (EPS) panels factory in Machakos in 2012.
The aim was to facilitate large-scale production of affordable houses using EPS technology.
LESS TIME
“The
use of EPS panels as a substitute for traditional materials used in
erecting walls, stairwells, floors and roofs is expected to reduce
construction periods, as well as direct and indirect building costs.
Besides return on capital invested, building a house using EPS panels
will significantly take less time than when constructing using
conventional materials such as stones,” the corporation says.
The
technology, which has been used successfully in Mexico, Britain, Qatar,
Nigeria, Mozambique and the US, is expected to alleviate the housing
shortage once embraced by the 47 counties.
The
EPS factory has an annual production capacity of 126,720 panels, which
translates to 460,800 square metres of construction material. The NHC
says that the construction industry is growing, as evidenced by the
industry growth rate, increase in total cost of materials for all
buildings, as well as the value of reported private building works
completed in towns across the country.
It
notes that, although the cost of housing has been increasing beyond
the reach of low-income earners, most developers anticipate that low-
and lower-middle class housing will drive demand in the future.
“Furthermore,
property investors might shift their attention to the low- and
lower-middle class housing sector since the upper and upper-middle class
housing market is experiencing stagnation due to the economic slowdown
and threat of oversupply,” the corporation notes.
Experts
say the EPS panels will be accepted once people start viewing them in
terms of affordability, availability, safety, security and construction
speed. The technology is environment-friendly as it reduces the use of
quarry stones, bricks and timber. It also makes mass production easier.
The
corporation has also scaled up its development schemes in the counties
and currently has projects in all major towns. It has also announced
plans to construct 15, 000 affordable houses yearly using a combination
low-cost cement and structural insulated panels (SIP) technology
targeting the growing middle class.
HUGE DEMAND
The
plan, which began with the invitation of tenders for the construction
of four factories which will build the panels two weeks ago, is expected
to begin in March next year, when the first one in Mavoko on the
outskirts of Nairobi is completed.
It
is estimated that the cost of building a three-bedroom house could drop
to an average of Sh1.2 million from Sh3 million using EPS technology.
Also
as part of its latest efforts to provide affordable housing, the
corporation is seeking to team up with private developers and financiers
at the county level in a partnership that has roped in the state
mortgage lender, Housing Finance.
Housing
Finance has also upped mortgages and is leveraging on the recently
launched construction solution known as Makao to drive retail deposits.
Makao is a seamless end-to-end building solution that involves the
mortgage lender and a consortium of building professionals including
architects, project managers, quantity surveyors, legal advisers, civil
and service engineers and contractors.
HF
Managing Director Frank Ireri said recently that the firm intends to
diversify its loan book to reduce reliance on mortgages and also open at
least five branches in the current financial year to grow its retail
business.
The integrated financial
services provider has unveiled more than 50 home construction designs
aimed at delivering access to quality and affordable housing for the
middle and lower end of the market.
The designs are marketed under Makao.
Mr
Ireri noted that the supply of affordable units falls short of demand, a
situation that has been aggravated by inadequate supply of affordable
stock of housing units.
“Above all,
the growth in middle-income brackets has created a huge demand not
sufficiently met. As such, the firm will roll out innovative products as
part ot its strategy to deliver a smooth, flawless and convenient
process to the customer,” he said.
Makao
seeks to address the key challenges home owners undergo during
construction such as poor supervision, cost overruns and inflated costs,
fluctuating prices of materials, delay in project completion, use of
substandard materials, theft of materials, diversion of construction
funds and unqualified fundis.
ONE-STOP SHOP
Poor
workmanship and use of low quality materials have been blamed for
nullifying the savings of home construction through higher maintenance
and repair costs.
The consortium is
working on more than 50 designs with details on design, pricing,
built-up area, construction period and proposed plot size. HF clients
will access 100 per cent financing.
The move hopes to save home owners up to 30 per cent of the total cost, which would go to developers as profit.
Makao
was introduced in 2007 as a convenient solution for people who owned
land and were seeking a one-stop construction solution.
The
partnership between Housing Finance and the professionals will save
potential home owners time spent seeking regulatory requirements and
supervising construction work, while assuring them of a finished
product.
The solution targets individuals, Saccos, corporates, Kenyans in the diaspora, investment groups, schemes and counties.
No comments :
Post a Comment