Low-income earners will now own a house in a new Government plan that targets slum dwellers.
The housing units will allow monthly payments of as low as Ksh 2,400 for a one-bedroom apartment.
Under the tenant purchase scheme, the two-bedroom and three-bedroom apartments will go for Ksh 4,600 and Ksh 6,500 a month, respectively. It will attract a three per cent interest rate.
President William Ruto said the shift in the delivery model for social housing will relieve ordinary Kenyans of the burden of owning a house.
“It also enables us to open up our economy and use housing to drive sustainable development,” the President noted.
Speaking on Tuesday during the launch of the proposed Kibera Soweto East Zone B Social Housing Project in Lang’ata, the President added that such projects will hasten slum upgrading in the country.
The President noted that the Kibera Soweto B will construct 4,054 units.
“We want all Kenyans to live a dignified life,” he noted.
The launch of the project comes a day after financial sector players agreed to support the Governments affordable housing plan and other major infrastructure projects including industrial parks with a Ksh 500 billion investment in the first year.
The investment will progressively grow to a total of Ksh 1 trillion in the fifth year.
The deal, which was reached in a meeting chaired by President Ruto on Monday brings together the pensions industry, insurance firms, SACCOs, cooperatives and Islamic finance institutions.
Referred to as the Sanduku Investment Initiative, its priority projects will include the Railway City Development, Nairobi International Financial Centre, Kenani Leather Park and Makongeni Modern Suburb among other public-private partnership projects.
The meeting agreed to use a structure agreed on by the Capital Markets Authority and Nairobi Securities Exchange (NSE) to facilitate investment-grade instruments to be listed on the NSE.