Kibera to get over 3,000 houses in slum-upgrading project
The government is to put up more that 3,000 housing units in Soweto in Kibera, Nairobi, as it embarks on the second phase of the slum-upgrading project in the area.
The 3,072 houses comprising one, two and three rooms each will come with a kitchen, toilet and bathroom. They are scheduled for completion in two years and will cost Sh6.5 billion.
The government two weeks ago handed over 822 houses to their new owners following the completion of the first phase that was designed as a pilot project to assess the viability of the plan.
“We are already finalising the designs and we believe by October, we should be able to advertise for the project,” Patrick Bucha, the housing secretary said.
SUBSIDISED RATE
Each of the houses is sold at a subsidised rate, Mr Bucha said, adding that they are not looking to make a profit but to break even (recover construction costs).
In the just concluded phase, a one-room unit was being sold for Sh600,000; a two-room unit for Sh1 million and a three-room unit for Sh1.35 million.
Occupants have up to 25 years to pay for the houses at an annual three per cent interest rate. This means those who took up the one-room units will pay only Sh3,500 at the beginning, with the amount decreasing with time.
Meanwhile, those who went for the three-room units will pay Sh7,875 at the beginning, with the amount gradually going down.
UNAFFORDABLE MORTGAGES
“We have done a socio-economic study of the area, so we understand the incomes of the people. Based on that, we sit down and design with them and the numbers are based on the level of affordability after we discuss with the Kibera people themselves,” Mr Bucha said.
The plan includes having buildings as high as 10 floors. Mr Bucha said that they will fit them with strong lifts, which will be properly managed.
The project will also include a commercial centre, a youth centre and hundreds of market stalls for the residents to conduct business.
Kibera was identified for redevelopment since it is one of the largest slums in Africa, with an estimated population of 400,000 people.
The informal settlement is composed of Kianda, Soweto, Gatwekera, Kisumu Ndogo, Lindi, Laini Saba, Silanga, Undugu, Makina and Mashimoni villages.
Soweto Village has been divided into four zones, with the new project now targeting Zone B. The following phases will be in zones C and D before the government tackles the other villages.
MIDDLE AND UPPER INCOME
Despite a rapid increase in the real estate space in the last one-and-a-half decades, the development of housing has generally targeted the middle and upper income groups.
The proportion of low-cost houses (generally defined as houses costing about Sh1 million or less) has been low while rents, especially in Nairobi, have been increasing, leaving low-income earners with few options.
Unaffordable mortgages with over 20 per cent interest rates have also meant that even when there are low-cost houses, the low-income group cannot afford them.
“The current housing supply in the country is skewed in favour of the middle- and high-income segments of our society, leaving a significant majority of the population to reside in slums and informal settlements,” James Macharia, the Transport, Infrastructure and Housing Cabinet Secretary said.
