Business Daily (Nairobi)
Morris Aron
30 April 2008
The dilapidated housing of Shauri Moyo estate in Nairobi will be demolished to pave way for modern apartments.
The Ministry of Housing has acquired Sh3.7 billion from an American firm-Lemna International - to construct 1,500 two and three bedroom apartments in the estate.
Construction will begin in two months and a second phase will see the building of another 6,000 houses.
Mr Soita Shitanda, the Housing minister, said the move was aimed at ensuring many people own homes and to reduce the number of sub-standard housing in the city.
"The partnership will in the long run reduce the housing supply shortage that still stands at 130,000 units annually country wide ," said Mr Shitanda.
The construction will be carried out by National Housing Corporation (NHC) and the houses will retail at a cost of between Sh1.1 million to Sh1.6 million per unit once complete.
Civil servants will, however, be given priority to buy before it is opened to the public.
Mr Shitanda also said the development would be the first in a number of planned projects targeted at providing low -cost housing units.
The plan is also to balance demand and supply in the country and reduce the highly priced houses that are above the reach of the low and middle income groups.
The stretch between Makongeni and Buruburu Estates in Eastlands has for a long time been characterised by dilapidated houses.
Built in the '50s as one of the classiest areas to live in Nairobi, the area has been downgraded over the years due to overpopulation and mismanagement to a point that it is an eyesore and a waste of valuable land, property players say.
Last year, Business Daily in an exclusive article reported on the need to demolish the old houses in the area and replaced them by new modern multiple dwelling unit houses to buffer the shortage in the city.
However, wrangling between NHC, Nairobi City Council and politicians blocked any attempts to upgrade the area.
Property experts and planners have in the past recommended that with proper planning and construction of multiple dwelling units in the area, the housing crisis in Eastlands could be halved.
Mr Shitanda took issue with a group of private developers who he said are still overcharging tenants in certain upmarket areas, saying that their days were numbered.
"We know that there are developers who are taking advantage of the current housing situation to price houses too highly compared to the cost of constructing such houses."
Last year, the minister had threatened to introduce price ceiling in such areas or carry out major housing supply to balance the prices.
Mr Shitanda was speaking after a courtesy call by the Turkish ambassador to Kenya Selim Kuneralp who said his country was keen on including Kenya in its $50 million yearly development grant to countries in Africa to help the country develop more low cost housing for citizens.
Money allocated from the Turkish grant will be channelled through UN Habitat's Slum Upgrading Revolving Fund for slum eradication in urban centres.
"We are keen at including Kenya in the kitty so as to enhance our co-operation between the two countries," said Mr Kuneralp.
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