The allocation of a social housing unit to Ms. Milka Moraa has fueled discussions about the affordability of Kenya’s housing initiatives. While the government claims to target low-income earners, financial requirements pose challenges for many. Reports emphasize the disconnect between housing costs and the earnings of average Kenyans, raising questions about the viability of the government’s housing objectives amidst existing financial burdens.
The recent allocation of a social housing unit to Ms. Milka Moraa, following a controversial dismissal by her church for rent assistance, has sparked significant debate about the affordability of Kenya’s housing initiatives. Public sympathy for Ms. Moraa resulted in donations exceeding Sh500,000, prompting the State Department for Housing and Urban Development to offer her a unit in the Mukuru kwa Reuben housing project. However, concerns regarding financial accessibility have since arisen for low-income individuals aimed at benefiting from such programs.
While the Cabinet Secretary for Housing, Alice Wahome, asserts that the housing initiative targets the lowest-income demographic, the financial reality presents a more challenging scenario. To secure a studio apartment, prospective tenants must make a down payment of Sh64,000, followed by monthly payments of Sh3,900. Research by FSD Kenya highlights that housing costs should not surpass 30% of an individual’s gross income, a standard many struggle to meet amidst various financial obligations.
The report further indicates that monthly repayments should not exceed 50% of net income to avert overwhelming debt, emphasizing the unfeasibility of the scheme’s accessibility. For instance, a monthly income of Sh76,667 is necessary to afford a studio apartment with Sh23,000 payments, while a one-bedroom unit demands Sh100,000 monthly and a two-bedroom requires an income of Sh223,333.
These figures starkly contrast with the average earnings of many Kenyans, a significant number of whom earn below Sh50,000 monthly. Economist Ken Gichinga of Mentoria Economics has noted that the introduction of a 1.5% affordable housing levy has further diminished the financial capacity of the populace. This broadens the concern regarding current housing initiatives, which appear unattainable for a considerable portion of Kenya’s population.
Government plans to release 4,888 housing units by March and to provide up to 5,000 units quarterly in response to a housing deficit of approximately two million units. However, the prevailing financial situation for many indicates a substantial gap between the government’s policy aims and the practical affordability for its citizens.
The debate surrounding the Kenyan government’s affordable housing program highlights significant financial barriers that prevent low-income earners from accessing housing. Despite promises of assistance, the required financial commitments and ongoing societal issues render these initiatives largely unattainable for many. Efforts to meet housing needs are commendable yet need to be recalibrated to ensure genuine affordability for all citizens.
Original Source: mwakilishi.com
