Opaque Housing Fund

[gout]

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I have read the available documentation on the Housing Fund and there is opaqueness. The government will provide land and infrastructure then private developer just builds and flips to buyers- so what is the need for the fund??

On the beneficiaries it does not make sense that one will buy a house in Park Road and then not charge a market rate rent.  Why not continue with government owned/kanjo owned houses as it is.

This is from Budget policy section on PPPS.

There exists a deficit of approximately 2 million units of housing stock. The Government plans to work the private sector to raise production from the current rate of 50,000 to 200,000 units a year in order to reduce the deficit. In the PPP arrangement, the Government will provide land and bulk infrastructure such as water, sewer and power to reduce the cost of housing production and to ensure affordability of houses to the bottom of the pyramid.

The budget policy talks of KShs. 10,000 mortgage. What informed this figure?? Bring the question of the opaque

The Government has set its sights on an ambitious overhaul of the housing and mortgage market with a plan to bring down the cost of mortgage instalments to just KSh 10,000 a month. The move is centred on guaranteeing buyers for developers of homes constructed under the affordable housing scheme. By assuring takers of affordable homes, the Government is betting on the intervention to grow the number of mortgage accounts in the country from 30,000 to one million by trimming financing costs.

Synergy with Counties which hold most of the land where the projects will be.
The budget policy talks of uncertainty.

Uncertainty on whether the Old council Houses Project in Eastlands is included in the Housing programme going forward. The Eastlands Regeneration project has already started. The Government has emphasized on public participation in these social Housing projects and communities must be part of this agenda as a priority in order to build trust between the Government and members of the public.

[gout]

Documentation on its 2018 genesis.

https://www.housingandurban.go.ke/wp-content/uploads/2018/11/LEGAL-NOTICE-HOUSING-FUND-REGULATIONS-2018.pdf

https://mman.co.ke/content/big-four-agenda-housing-fund-regulations-2018#:~:text=The%20new%20Section%2031A%20of,5%2C000.

https://www.pwc.com/ke/en/pdf/tax-alert-housing-fund-regulations-of-2018.pdf

[gout]

More opaqueness with pension funds billions and REITs

https://www.theeastafrican.co.ke/tea/business/how-kenya-plans-to-deliver-affordable-homes-4119988
https://nation.africa/kenya/business/pension-funds-give-ruto-terms-for-homes-billions-4036420

[gout]

From the manifesto

How was Kenya Kwanza to finance affordable housing.

Financial outlay;
FY2022/23-FY2026/27 - ksh250B

Financing;
-Budget commitment - ksh50B ~ksh10B/yr
-Pension funds - ksh200B ~ ksh40B/yr.

1. So, housing levy was to generate ksh50B? &
2. What became of pension funds component? pic.twitter.com/BatJkqVSWl

— Africanus (@AfroEconomicus) May 26, 2023

[RV Pundit]

Hii kitu boss I have analysed years ago.Why are we intellectually lazy

[RV Pundit]

Housing levy job is to scale a proven model that has delivered very cheap houses.Potentially a billion dollar invested in housing levy can easily generate 25b.Housing levy is deposit assurance for mass off take. The details can be worked out in good faith

[gout]

What is the role and input of developers? Just being foremen and then owning the land and houses to flip to Kenyans??

Cheap how?? All marshal plans are very costly due to employment angle.

Housing levy job is to scale a proven model that has delivered very cheap houses. Potentially a billion dollar invested in housing levy can easily generate 25b. Housing levy is deposit assurance for mass off take. The details can be worked out in good faith

[hk]

As I had stated in earlier threads , kenya has an income problem not a housing problem.

Folks, do you know that the Kenya Vision 2030 states that by the year 2030, 60% (sixty percent) of Kenya's population will reside in Kenya's urban areas.  And has a chart with projections to support it (page 119).  1/N

— Kwame Owino (@IEAKwame) June 7, 2023

. The build it and they'll come policy what ndii used call cargo cult is what housing scheme is all about.

[gout]

Vision 2030 is a dead horse which keeps being thrown around as kool aid. Devolution, Corona and dollar inflation is reversing urbanisation trends.

As I had stated in earlier threads , kenya has an income problem not a housing problem.

Folks, do you know that the Kenya Vision 2030 states that by the year 2030, 60% (sixty percent) of Kenya's population will reside in Kenya's urban areas.  And has a chart with projections to support it (page 119).  1/N

— Kwame Owino (@IEAKwame) June 7, 2023

. The build it and they'll come policy what ndii used call cargo cult is what housing scheme is all about.