Socio-economic housing model best for Big Four pillars as Urithi projects delivery in a year

Real estate practitioners and property developers say President Uhuru’s legacy on housing is achievable but only if government works better with private entities, who must also need to adopt new technologies and enhance their mobilisation capacities.



Under the Big Four Agenda, the Head of State projects that the government would deliver at least 500,000 housing units per year to enable more Kenyans to own their homes.



However, Kenyans have been challenged to also invest in socio-economic housing models which are a convenient way of home ownership.



Urithi Housing Cooperative is currently the only housing society to adopt the socio-economic model of providing houses for their members in Kenya.



For the case of Urithi, which has delivered thousands of units in different parts of Nairobi, Kiambu, Kajiado and Machakos, they have projected to deliver all their housing projects to the 28,000 members in the next 12 months.



Urithi chairman, Samuel Maina, says this will be a result of a strategic transformation of their mobilization approach.



“The new strategies will now enable us clear the entire housing backlog and our members should not be worried of any further delays,” Maina says, observing how delays in member contributions or non-subscription die to financial constraints had left some projects lagging behind on time.



One of their new flagship off-plan projects under the affordable housing scheme is the Osteen Terrace Gardens in Joska Machakos County.



“The OTG project is the first of its kind to enable us achieve affordable housing for our members and we are using the socio-economic model.



“These particular project is vary timely and it will hugely compliment the government’s efforts in attaining the big 4 agenda –the housing component, by engaging other stakeholders like us.”



During his inauguration speech after being sworn in for his second term in office, president Kenyatta said: “My Administration will focus on attracting from both public and private sources, the injection of patient, low-cost capital into the housing sector.



“Policy and administrative reforms which are targeted at lowering the cost of construction, and improving accessibility of affordable mortgages will be given first priority.”



President Uhuru Kneyatta speaking at State House, Nairobi, on 10 May 2020. PHOTO/PSCU



President Kenyatta’s Big Four Agenda also focuses on manufacturing, universal health care and food security.



Under the affordable housing component the government intends to, through National Housing Corporation, use innovative construction methods and low-cost building and construction materials.



“The government will achieve its dream fast if they partner with the saccos and cooperatives. Cooperatives and Saccos have structures, a wide geographical reach and most importantly members,” avers Maina.



While a section of Kenyans are skeptical about joining housing societies because of past not-so-good experiences, going by the example of Ekeza Sacco where members lost their money due to poor governance, the socio-economjc model will be the best channel to attain affordable housing for Kenyans.



The model, which has successfully been applied in countries like South Africa and Nigeria, among others, works best because members come together to mobilize their resources under an institutional set up to shore up their capacity to individual homes over a prescribed period of time.



Members contribute a pre-determined percentage of the total cost to enable the project to kick off then sustain construction through monthly check-off system.