Treasury to fund Gikomba, Kamukunji market facelifts under housing agenda » Capital News

NAIROBI, Kenya, Jun 12 – The National Treasury has allocated Sh1.1 billion for the ongoing construction of Gikomba, Githurai, Chaka, Kamukunji and Dagoretti markets.

The funds fall under the Sh15.5 billion kitty set for Affordable Housing, one of the Big IV development blueprint agenda, under the 2020/2021 budget.

The allocation represents a Sh5 billion increase from the Sh10.5 billion channeled to the programme in the 2019/2020 budget.

Out of the funds, Sh6.9 billion will be directed towards the enablers of the Affordable Housing programme.

National Tresurt Cabinet Secretary Ukur Yatani said during budget presentation on Thursday the government will secure an additional Sh3.6 billion from the African Development Bank to finance the program in addition to Sh7.5 billion earmarked under the Kenya Urban Programme for the Affordable Housing initiative.

“We are also concluding discussions to bring on board an additional Sh 3.6 billion from the AFDB; Sh 7.5 billion for Kenya Urban Programme and Sh1.1  billion for the ongoing construction of Gikomba, Githurai,Chaka, Kamukunji and Dagoretti markets,” he said while presenting budget speech in Parliament.

In order to support the Affordable Housing program, he pointed out that so far, the Kenya Mortgage Refinance Company (KMRC) has raised Sh2 billion while the National Treasury has mobilized an additional Sh35 billion to support its operations.

KMRC was established to provide long-term loans at affordable rates to mortgage providers who will in turn offer citizens lower lending rates.

“In response to COVID-19 pandemic, KMRC will help to maintain adequate liquidity among primary housing mortgage providers in order to keep housing finance and the housing market functioning,.This will avert potential credit crunch that would hurt lower income households and interrupt efforts to support affordable housing,” Yatani said.

The program was launched in 2017  as one of the  national government’s four economic development pillars. The other three pillars are: manufacturing, universal healthcare and food security.

The first batch of 1,370 flagship affordable houses constructed in Nairobi’s Ngara, was handed over to the government in January.

The state department for Housing and urban development is set to roll out allocation of 137 affordable housing units next month.