The Star (Nairobi)

Kenya: Lender Lobbies for County Housing Corporations

Mortgage lender Housing Finance is in discussion with seven counties to establish county housing corporations, which would partner with its building subsidiary to deliver houses.

Frank Ireri, the managing director, said at least one such special purpose vehicle will be incorporated in 2014.

"We are targeting counties with land that is free of encumbrances. Counties will need not contribute anything beyond the value of land," Ireri said.

He said such investment vehicles for county governments are anchored in the constitution with a view to guarding public assets in various economic sectors such as housing, agriculture and mining.

Kiambu county deputy governor Gerald Githinji said the idea is welcome, seeing that appetite for real estate in his county has locked out many lower middle income earners from home ownership.

"Supply of affordable housing has not been rising as fast to match demand as developers target high income earners for better returns. This would help many to own homes."

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