Why the Affordable Housing Project Is a Sham: Insights from UDA Senator

 Marsabit senator challenges the credibility of the affordable housing program in Kenya

President William Ruto addressing residents of Mukuru kwa Reuben during the inspection of the affordable housing project on September 26, 2022

Marsabit Senator Chute Mohamed has raised concerns about the viability of the Affordable Housing Program, which requires Kenyan citizens to contribute 1.5 percent of their earnings to the Housing Fund.

In his capacity as a member of the Parliamentary Committee on Roads and Housing, Senator Chute Mohamed expressed his reservations about the program during a session at the Assembly. 

He questioned the rationale behind the government providing land for the Affordable Housing Program at no cost while the final housing products are sold to Kenyans at a high price.

"The concept of Affordable Housing appears to be a scheme. The government is granting land for this initiative, providing tax exemptions on building materials, waiving value-added taxes, and transferring land at no cost. Yet, the resulting properties are sold at unaffordable, commercial rates," he remarked.

Senator Chute Mohamed's remarks were made about a petition filed by residents of Mombasa who had expressed concerns about the affordability of a housing project.

He criticized the affordability of the housing project in Mombasa, emphasizing that the completed units were being sold at a price significantly higher than the market value, even though the land was provided by the government.

"If the President can hear me, he should halt all developments labeled as 'Affordable Housing.' There is no such thing as affordability in these projects. They are orchestrated by individuals with ulterior motives to defraud the country," he declared.

The Senator also raised the issue of land ownership, highlighting that Kenyan landowners receive only 10 percent of the benefits while developers receive the remaining 90 percent.

He pointed out that when the project was initiated, only one tender was submitted for the 13-acre plot of land.

According to Senator Chute Mohamed, the completed Affordable Housing project in Mombasa was being sold at a rate of Ksh 90,000 per square meter, a price considerably higher than the market value, which typically falls below Ksh 70,000.

He shared an example of a property purchased by a friend at a rate of Ksh 3.5 million for 104 square meters, which translates to Ksh 34,000 per square meter.

This stark contrast raised questions about the justification for the high prices in the Affordable Housing Program.

"In my assessment, the government may have lost land to fraudulent individuals posing as developers. I predict that in a decade, there will be very little land available for Kenyan citizens, as most of the land earmarked for government development will have fallen into the hands of these fraudulent 'developers,'’ he warned.