Kenya Real Estate Agents Association (KPRA) General Manager Njuki Kingori has called on the government to fully embrace the rent-to-own model, particularly the Tenant Purchase Scheme (TPS), to allocate affordable housing. requested.
Kingori argues that through this model, the government can involve the majority of Kenyans in programs aimed at revolutionizing home ownership in the country.
In this model, the government or developer initiates the contract with the tenant and determines the agreed deposit. The tenant then moves into the home and pays rent for a certain period of time, eventually gaining ownership of the home.
Kingori stressed that this model is the only way more Kenyans can benefit from the program, given the challenges they may face in paying in cash and obtaining credit from financial institutions. did.
“For the average Mwananchi, it is difficult to avail a home loan from the banking sector as you need to preserve your history, credit rating etc. There are many things to do before you can take out a home loan.” he lamented.
Public-private partnerships to reduce housing costs
The real estate agent urges other aspiring financial institutions, organizations and businesses to work with the government to further reduce the cost of housing and provide funding to make housing affordable for all Kenyans. encouraged.
He said that even though the current cost of housing is still relatively high, rising costs related to materials and other factors make it impossible to go below the ceiling price and that the government cannot reduce prices further. He admitted that it was difficult.
“The factors that affect home prices are land, materials, taxes, and all of that, including raw materials like cement and stone. Some developers are moving toward prefabrication, which also comes at a cost. will be higher.” he pointed out.
King-Oli also urged real estate agencies to build more affordable housing and sell it through the rent-to-own model, providing Kenyans with additional options beyond government programs.
The government offers a range of payment options for units under the Affordable Housing Programme, including cash payments, mortgages and housing finance through the 30-year Rent and Tenant Purchase Scheme.
To qualify for AHP, Kenyans must register by dialing *832# or by visiting E-Citizen's Boma Yangu portal. You should then save for a down payment equal to 10 percent of the total cost of your desired home to ensure you account for the distribution once your chosen unit is completed.
The government aims to build a minimum of 200 affordable homes in every constituency in Kenya in the first phase, with the majority of these homes expected to be completed by the end of this year.
