The Affordable Housing Program (AHP) stands on several pillars which include job creation and boosting local manufacturing . In a move geared toward building these pillars, the government, through the State Department for Housing and Urban Development has introduced a plan to connect small and medium enterprises, jua kali traders as well as light industry manufacturers within the construction sector to developers through Boma Yangu platform. Once the plan materializes, SMEs selling construction materials and services will advertise directly to developers working on affordable housing projects.
The construction sector is a magnet of opportunities for businesses selling diverse products and services, such as flooring solutions, glass, window grills, doors, wood products, sinks, taps, cabinetry, ceramic products, metal works, plumbing and everything that goes into construction. It seems, the government is now harmonizing all the pillars under the program through digital access. Businesses within the sector will-through a representative register for accounts on the Boma Yangu or eCitizen platforms. Such accounts will give them access to a rich network of developers within the AHP.
Meanwhile, financial institutions will also have an opportunity to join the program and provide credit services to both buyers and developers. Previously, the main financier has been the Kenya Mortgage and Refinancing Company. KMRC offers low interest loans to its local partner banks which then make these credit facilities accessible to Kenyans building or buying properties that would be ranked as affordable. KMRC funds projects that cost 8 million or less. And the longs have single digit interest rates with a longer repayment period, thus lowering monthly repayment instalments significantly.
Access to credit has been a major obstacle for a lot of potential buyers with interest rates soaring each year. If more financiers are allowed to join the program, buyers will be spoilt for choice and developers will also have direct access to credit, making it easier to complete projects on time.
These two additional categories will join a long list of strategic partners onboarded into the program. Other partners include private developers, diaspora buyers and organized groups which are now allowed to buy multiple properties on behalf of their members. Such groups could include, companies buying for their employees, SACCOs or investment institutions which for a long time have been at the forefront of organized purchase of properties.
All these strategic partners and stakeholders will access information and services through eCitizen accounts which are now linked to the Boma Yangu platform.
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