KNCCI and KPDA Sign MoU to Unlock Kenya’s Affordable Housing Agenda
The Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya Property Developers Association (KPDA) have signed a Memorandum of Understanding (MoU) to strengthen private sector involvement in the Affordable Housing Program (AHP).
According to KNCCI , Housing prices have increased by 100 percent since 2004, with 22 percent of Kenyans residing in urban bringing the urban population growing at a rate of 4.2 percent every year. Therefore, Kenya requires approximately 200,000 new housing units annually to meet demand of these population, yet only 50,000 homes are built.
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Speaking during the signing, KNCCI chamber President Dr. Erick Rutto urged the local investors to be protected, noting the foreign competition which has limit Kenyan participation in large real estate projects.
“Indigenous companies are not participating in the real estate sector. There is a need for some critical sectors to be protected. Construction has been heavily affected by foreign competition,” He said.
The real estate sector contributes about 10 percent of the country’s Gross Domestic Product (GDP) with a notable increase estimation of 7 percent to 14 percent as of the year 2022 , and Nairobi ranked as the top five growing real estate market in Africa.
Affordable Housing Board Chairperson Jeremiah Ndambuki Applauded this collaboration, stating that the housing programme has already created over 300,000 youth jobs and reduced housing unit costs by 20 percent, stating that it all needs on local inputs and contractors.
“The affordable housing programme is creating consumptive demand with the volume of work also having led to the reduction of cost per unit approximately 20 percent. We are now buying over 70 percent of all inputs locally and we have engaged over 100 local contractors. It gives personal satisfaction to see the impact of the program,” He said.
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The acting KNCCI CEO K.K Mutai together with KPDA chairman encouraged the collaboration stating the positive impact it will have across every sectors of the country’s economy. While KNCCI focus on cubing financial challenges on real estates sector, KPDA Vows to bring the technical expertise and experience to address challenges faced by property developers.
