The case of Ms. Milka Moraa highlights the financial difficulties low-income Kenyans face in accessing government housing initiatives. Even as the government asserts a focus on the lowest-income groups, high costs make affordability a challenge. Economist Ken Gichinga points out that additional levies further strain financial capabilities, making access to housing units increasingly unattainable for the majority of citizens.
The allocation of a social housing unit to Ms. Milka Moraa, who faced rejection for rent assistance, has sparked a significant discussion regarding the affordability of Kenya’s housing initiatives. Ms. Moraa received notable public support, raising over Sh500,000, which led the State Department for Housing to offer her a unit in the Mukuru kwa Reuben social housing project. However, this situation has highlighted the financial hurdles low-income earners endure in accessing such government programs.
While the Housing Cabinet Secretary, Alice Wahome, asserts that the housing program targets the lowest-income population, the requirements present a conflicting reality. A down payment of Sh64,000 for a studio apartment is required, along with monthly payments of Sh3,900. According to a report from FSD Kenya, housing costs ideally should not exceed 30% of gross income, a benchmark that many struggle to meet due to existing debts and other financial demands.
The report specifies that no more than 50% of net income should go toward monthly repayments to avoid excessive debt levels. These stipulations bring the viability of the housing project into question, with estimates suggesting that an individual should earn Sh76,667 monthly to afford a studio apartment with Sh23,000 in monthly expenses. Comparatively, average Kenyan salaries are often below Sh50,000 monthly, further complicating the housing program’s reach.
Economist Ken Gichinga warns that the implementation of a 1.5% affordable housing levy exacerbates the financial strain on the populace. The data reveals a stark imbalance, indicating that only 371,895 workers earn over Sh100,000 monthly, with 1.36 million earning between Sh50,000 and Sh99,999. The government plans to introduce 4,888 housing units by the end of March and aims for a quarterly provision of 5,000 units to reduce the current two million unit deficit, yet affordability remains a significant barrier for many.
The situation surrounding affordable housing in Kenya illustrates a critical disparity between policy intentions and realistic access for low-income populations. While the government seeks to expand housing availability, financial constraints continue to limit opportunities for many citizens. The requirements for participation in housing schemes create a challenging landscape, where earnings do not align with the costs, emphasizing the need for reevaluation of these initiatives to truly benefit intended demographics.
Original Source: mwakilishi.com
