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Forum => Kenya Discussion => Topic started by: gout on June 05, 2023, 11:02:24 PM

Title: Opaque Housing Fund
Post by: gout on June 05, 2023, 11:02:24 PM
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.
Quote
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
Quote
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.
Quote
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.


Title: Re: Opaque Housing Fund
Post by: gout on June 05, 2023, 11:05:28 PM
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
Title: Re: Opaque Housing Fund
Post by: gout on June 05, 2023, 11:09:09 PM
More opaqueness with pension funds billions and REITs
Quote
Kenya’s Capital markets Authority (CMA) is in the process of setting up a body to oversee the operations of the Real Estate Investment Trusts (REITs) as part of measures to reinvigorate investments in the real estate sector through the Nairobi Securities Exchange (NSE).

The financial markets regulator says it has made significant progress in the setting of up of the Kenya National Reit (KNR), in collaboration with the Nairobi Securities Exchange (NSE), the Association of Pension Trustees and Administrators in Kenya (Aptak) and the state-run real estate investment vehicle dubbed Sanduku.

President William Ruto is seeking to raise Ksh1 trillion ($79 billion) through private public partnership (PPP) with Ksh311 billion ($2.49 billion) coming from pension funds in five years (2022-2027), under the Sanduku imitative.

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
Title: Re: Opaque Housing Fund
Post by: gout on June 05, 2023, 11:14:42 PM
From the manifesto

Title: Re: Opaque Housing Fund
Post by: RV Pundit on June 06, 2023, 02:51:48 AM
Hii kitu boss I have analysed years ago.Why are we intellectually lazy
Title: Re: Opaque Housing Fund
Post by: RV Pundit on June 06, 2023, 02:54:24 AM
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
Title: Re: Opaque Housing Fund
Post by: gout on June 06, 2023, 12:02:14 PM
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
Title: Re: Opaque Housing Fund
Post by: hk on June 07, 2023, 03:59:36 PM
As I had stated in earlier threads , kenya has an income problem not a housing problem. . The build it and they'll come policy what ndii used call cargo cult is what housing scheme is all about.
Title: Re: Opaque Housing Fund
Post by: gout on June 07, 2023, 04:53:03 PM
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. . The build it and they'll come policy what ndii used call cargo cult is what housing scheme is all about.