National Housing Corporation Sixty years of provision of affordable housing
Direct funding from the Exchequer was stopped mainly due to the Structural Adjustment Programmes that were being implemented by the Government. During and after the restructuring period, the NHC has been able to develop several housing schemes across the country. Tenantpurchase is the most common mode of sale due to its friendly rates and convenience. In this type of development, the NHC develops houses for sale to wananchi who pay a 10-20 per cent deposit and the balance is in form of a loan to tenants who pay for it within 20 years through monthly remittances that eventually end in a tenant owning the house. Areas with units on tenant purchase include Bububu Likoni, Kisumu Mamboleo, Kisii, Kakamega, Lang’ata and Nyeri. Other units are on rental schemes such as the Changamwe infill, Woodley infill, Eldoret and Nairobi’s Sadi Road South B infill. In 2012, the corporation was able to offload 1,500 units in Madaraka, Nairobi West and Lang’ata Phase 4 and 5 to the public.
A housing unit built using NHC’s EPS panels in Kajiado County. Inset: The Kitchen Area
For the last 60 years, the National Housing Corporation (NHC) has been building houses. What started as the Central Housing Board in 1953 “to provide houses for Africans” has grown into a respectable corporation. The Central Housing Board operated on a Housing Ordinance No.17 of 1953. The ordinance provided funds to build houses for Africans.
of affordable accommodation and lowcost houses for the middle and low income segments of the market, assist in housing research, provide rural housing loans to Kenyans and set standards for other developers.
In 1960, amendments were made to provide housing to any racial community. However, in October 1960, the Minister without Portfolio, Mr. C.B. Madan (later Chief Justice of Kenya) moved the Housing (Amendment) Bill to remove the racial nature of the Central Housing Board and make its services available to all communities.
In the 1980s, the NHC, using funds from the Central Government, built some low-cost housing in Pumwani and Kibera Highrise in Nairobi. For about two decades, the NHC was the market leader in the housing industry but its role declined in the 1990s due to the economic crunch and high interest rates. Mortgage financing also went beyond the reach of most Kenyans as the housing industry became competitive with new entrants into the market.
In 1967, the Central Housing Board was transformed into the National Housing Corporation and given powers to undertake housing projects throughout the country. It was also mandated to promote construction
In 2004 the government started formulating a five-year National Housing Development Programme (NHDP), which was to operationalise proposals contained in the National Housing Policy. The NHC
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also underwent some restructuring which included converting its debts amounting to Sh5.32 billion owed to the government into equity. The government then injected more funds into the form of equities and grants.
Another area in to which the corporation has ventured is the provision of Rural and Peri-urban Housing Loans under which more than KShs 1 billion has been disbursed to applicants all over the country. It provides loans to supplement construction of individual permanent residential houses in rural areas, thereby assisting in meeting the corporation’s mandate of providing decent and affordable housing to all Kenyans.
The corporation developed housing schemes through funding by the Exchequer, while local authorities provided the land on which the houses were built. The houses were sold on either the tenant-purchase model or rented out. The schemes include Madaraka and Ayany estates in Nairobi and the Changamwe and Likoni rental schemes in Mombasa.
Over the past three years, the housing deficit has doubled due to population growth, which has increased the demand for housing. Preliminary results of a recent government survey indicate that the housing deficit in the urban and rural areas stands at 200,000 and 350,000 units, respectively. The corporation is set to bridge the deficit by developing at least 10,000 units over the next five years
through the Turnkey model of delivery in Kisumu Kanyakwar, Stoni Athi, Eldoret, Changamwe, Nyeri, Meru and Nakuru.
and institutions that ride on NHC’s goodwill, market and equity contribution on land, skills, technology and financials.
The NHC further intends to have a county housing scheme where a minimum of 250 units will be developed every year in each county. It intends to reinvest the proceeds gained from the sale of commercial housing into building at least 5,000 low-cost houses under social and public housing for low income earners. Therefore, home ownership will not be perceived to be the preserve of the rich or middle classes. This will also reduce gentrification, where middle income earners occupy low income settlements due to lack of proper houses. All this is in line with the fulfilment of the Vision 2030, the Millennium Development Goals and the Jubilee manifesto.
The other mandate of the NHC is to carry out research on low-cost housing alternatives, especially for low and middle income earners. As a result of this research, the NHC identified the use of Expanded Polystyrene Technology (EPS) panels as a cheaper yet reliable alternative. It has already established a Sh1 billion EPS Factory at Mavoko in Machakos County, which will produce the panels for the local market.
The corporation further proposes to support the housing needs of the various government agencies and institutions by developing at least 10,000 units over the next five years for the Kenya Police, the Kenya Defence Forces, Ministry of Health, Judiciary and the Kenya Prisons. These projects are funded by the Exchequer . The corporation is also looking at some in-house projects. These include Kisumu Kanyakwar, Kericho, Stoni Athi, Eldoret and Changamwe. These will be funded through a corporate bond, cheap international financing, REITS, internally generated revenues and local bank loans. This will further ensure that NHC houses continue to be cheaper, affordable and accessible to all Kenyans.
Besides saving investors labour and time, the EPS panels take less time to fix than ordinary stones. They can be used to erect stairwells, walls and floors. This is a first of its kind in the East and Central Africa. This technology has already been implemented by countries such as Mexico, Britain, Qatar, Nigeria, Mozambique and USA. The NHC is currently under the leadership of Mr Wachira Njuguna, an architect with a vast experience in the building, construction and real estate realm.
National Housing Corporation NHC House; Aga Khan Walk P.O. Box. 30257-00100 Nairobi Tel: 254 20 32147/9 Cell: 254 724 256 403/ 254 735 993 030 Email: info@nhckenya.co.ke website: www.nhckenya.co.ke
The corporation is also seeking to partner with public and private sector developers
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