The government says tax incentives are intended to attract the private sector to the affordable housing program » Capital News

NAIROBI, Kenya, May 27 – Public Service chief Felix Koskei says the government is ready to introduce policy reforms to accelerate private sector involvement in the affordable housing program through incentives and tax exemptions.

Speaking at an event marking the 70th anniversary of the National Housing Corporation held in Nairobi on Monday, Koskei assured that the government is committed to addressing the national housing deficit being witnessed in the country due to rapid urbanization by prioritizing the implementation of the project housing.

“To comprehensively address the housing problem, the government is aware of the key role played by the private sector and truly appreciates its huge investment in the real estate sector. “The government is committed to implementing enabling policy reforms, including introducing tax incentives, exemptions, as well as reducing financing costs, to accelerate private sector engagement,” he said.

The head of public services said the Housing Corporation’s strategic plan 2023-2027 would accelerate the sector’s commitment to Project Affordable, which aims to achieve a balance of over 500,000 new urban residents recorded annually.

He said the project aims to build affordable housing for low- and moderate-income people to provide them with access to good quality homes and other social amenities, including schools and health care facilities.

“The recently passed Affordable Housing Act, 2024 marks an important milestone in our journey to ensure that every Kenyan has a place to call home. The act created the Affordable Housing Fund, whose task is to finance the construction of affordable housing in the country, he said.

The government has so far launched the project in 39 counties across the country, with Nairobi County leading the way with over 64,000 housing units.

The project, which is one of the Government of Kenya’s Kwanza major projects, is being implemented in 223 high priority locations identified by the government for the construction of affordable housing.

The government plans to build over a million apartments a year. Given that Kenya faces an annual housing deficit of more than 200,000 units, the government is also counting on the private sector’s support to deliver housing.

Private sector entities are calling on the government to cooperate with private institutions in implementing the affordable housing program.

They indicated that their involvement would have an impact on raising construction standards and streamlining the obtaining of building permits in terms of project integrity.

Additionally, they argue that the housing levy will enable private sector developers to invest in housing due to the availability of a ready market.

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