NAIROBI, (Xinhua) --
Kenya will soon unveil a raft of regulatory
incentives to boost private sector investments in low cost homes
amid huge deficit, an official said on Wednesday.
Charles Hinga, the
Principal Secretary in the State Department of Housing, said an
overhaul of archaic policy and regulatory framework will pave
way for robust private sector participation in development of
affordable shelter in Kenya’s burgeoning cities and rural towns.
“We are finalizing
reforms in the regulations and policies governing the real
estate sector to encourage greater private sector engagement in
helping us achieve the Big Four Agenda on housing,” Hinga said
“Local and foreign
investors are being encouraged to invest in housing projects
that promise returns as the national government set up
supportive infrastructure,” he added.
The PS spoke during
a roundtable discussion on the Big Four housing agenda organized
by Kenya National Chamber of Commerce and Industry (KNCCI).
Senior policy makers
and industry executives who attended the roundtable agreed that
regulatory incentives were key to attract capital that is
required to develop homes for the low-income population segment.
“The private sector
should seize opportunities created by tax waivers announced by
the President recently to stimulate investments in the housing
sector,” said Hinga.
Kenya has an annual
housing demand estimated at 250,000 units but the supply stands
at 50,000 due to under-investments in the sector linked to
haphazard regulation, political uncertainties and low purchasing
Hinga said enactment
of progressive laws and adoption of alternative building
technologies will help Kenya tackle a housing deficit of 1.9
Kiprono Kittony, the
Chairman of KNCCI, said innovative financing coupled with
subsidized cost of land and development of supportive
infrastructure is key to boost home ownership in the East
Africa’s largest economy.