Chinese contractors

According to the Ministry of Transport, Infrastructure, Housing and Urban Development, 63 percent of Kenyans do not own homes and this demographic is being targeted by the government to become new home owners.

Chinese companies have begun building low-cost housing as part of the Kenyan Government’s initiative to construct affordable housing.

The government plans to construct over 1 million houses by the end of 2022 at a cost of $23 billion, which, apart from providing shelter, will also provide much-needed jobs.

The average cost of a house will vary from $20,000 to $80,000, according to Fabian Nzivo, CEO of Banda Homes Ltd., one of Kenya’s largest construction companies. But most homes will cost about $35,000. Currently the average cost of a house in Kenya is $130,000, making housing accessible to only a few.

Some ground projects began in October 2017 when the housing initiative was first announced, with a number of houses currently under construction in Nairobi and the coastal city of Mombasa.

Kenyan construction companies have partnered with their Chinese counterparts to construct new homes. Banda Homes has teamed up with China Zhongxing Construction Co.

“At Banda Homes, most materials are from China and they are durable and affordable. The Kenyan Government trusts Chinese contractors,” said Nzivo. “Laborers are mostly Kenyans, but we do have some Chinese engineers on the ground. We have already begun constructing over 600 three-bedroom bungalows in several parts of the country.” Nzivo added that the high cost of land in Kenya remains a problem.

“Despite the government’s plan to build 1 million homes, there will still be a deficit of 3 million by 2022. So demand and bigger projects will need to be initiated,” said James Macharia, Cabinet Secretary (Minister) of Transport, Infrastructure, Housing and Urban Development.

“Part of the ownership plans will be a strategy known as ‘rent as you own.’ A certain agreed amount will be paid on a monthly basis for those who cannot afford to pay cash [and buy the house outright],” said Macharia.

This system is the same as paying a mortgage and has no hidden costs.

According to Macharia, about 10 Chinese companies have been awarded construction contracts.

Housing expensive

Government figures for 2017 show that the average salaried income in Kenya is about