Site Options
Cheap mortgages for slum dwellers Print E-mail
Cheap mortgages for slum dwellers

By Morton Saulo

UN-Habitat and the Government have announced the initiation of a mortgage scheme for slum dwellers.

The mortgage scheme is to benefit Kenyans living in the slums to improve the standards of living and alleviate poverty.

UN-Habitat Executive Director, Mrs Anna Tibaijuka, made the announcement on Wednesday at a news conference after a day’s national stakeholders summit on slum upgrading, low cost housing and resource mobilisation under the Kenya Slum |Upgrading Programme (Kensup).

"The credit enhancement scheme of $1.8 million will go to banks and generate more money, which will enable the Government revolve its own funds," Tibaijuka said.

In the same conference, Housing minister, Mr Soita Shitanda, announced preparation of Kensup Strategy of 2005-2020.

Shitanda said the strategy outlines the implementation and financing strategies to be used to achieve the vision of improved and sustainable urban living environments.

"Kensup contains a financial strategy that provides guidance on the mobilisation of financial support form both the public and private sectors to facilitate the implementation of the upgrading programme," Shitanda said.

Tibaijuka said the first beneficiaries of the mortgage scheme would be women. She announced the formation of Kenya Women Land Access Trust (Kewlat) that had been registered as a financial intermediary.

The director said UN-Habitat was designing and testing pro-poor housing finance system under the Slum Upgrading Facility. She added that for the project they would work with commercial banks to establish the mortgage finance windows for poor households organised in housing co-operatives.

Tibaijuka noted that UN-Habitat recognised that there were several advantages of saving communally.

"A co-operative is highly participatory in its management and is a good entry point for other shelter-related issues such as sanitation and waste management," she said.

The pilots will start at Lang’ata for Kibera Soweto slum dwellers.

She said Kewlat was organising women in Soweto on the Government eligible list to be among the first to take mortgage and occupy Lang’ata flats built by Government.

"This way the Government will get its money back and the people will get affordable mortgage," Tibaijuka said.

She noted that participation in co-operative saving schemes brought the community together as it worked towards a common goal, and hence contributed to social integration and cohesiveness.

The executive director also said they were working with international finance institutions to pioneer pro-poor access to basic urban infrastructure and services, mostly in areas of water and sanitation.

Shitanda said that was an effective way of providing housing for low-income earners. He noted that 600 units in Lang’ata would be ready for occupation by the end of the year.

For the KENSUP Strategy 2005-2020, Shitanda said the Government would provide counterpart funding and other bilateral support for the programme and that UN-Habitat would assist in the mobilisation of external financial resources.

"Financial resources will be required to construct houses and related infrastructure and services, purchase of houses by families, establishing employment, income generating activities, maintenance of houses among other functions," the minister said.

Shitanda said they aimed at improving the livelihood of at least 1.6 million households in slums, translating to 5.3 million people by 2020.

He estimated the cost of all phases at Sh883.76 billion or $11.05 billion.

The minister added that Government had established the Kenya Slum Upgrading and Low cost Housing Unit Fund (KENSUF).

He said the fund was serving as a central depository of all mobilised financial resources for slum upgrading.

He said the fund was expected to draw money from donors, community based organisations, the private sector and budgetary allocations.

"The fund has a potential for pulling resources and institutionalisation of transparent resource allocation mechanism," Shitanda said.

He added that his ministry had deposited Sh400 million as part of appropriated funds by Parliament in the financial year 2006/2007.

Shitanda also said his ministry was promoting the adoption and use of appropriate house building and construction technologies using locally available materials.

He said they were setting up Appropriate Building Technology Centres in all eight provinces.

"The centres will facilitate improved and affordable housing for Kenyans and consequently check the mushrooming of slums," the minister said.

(c) East African Standard (www.eastandard.net)
 
Thu 09 Sep 2010 - 18:10

sarova hotels

Hottest Properties

Most Popular Topics

Stanchart Home Loan

 

 

 

 

 

 palacina

 

© 2009 Property.co.ke. All rights reserved.

Property.co.ke - The No. 1 Kenya real estate listings website. Find properties to let or for sale anywhere in Kenya. Real Estate in Kenya includes properties in Nairobi, Mombasa, Kisumu, Eldoret, Nakuru, Malindi, Diani, Thika, Kiambu, Kericho, Machakos, Limuru, Athi River, Kitengela, Ongata Rongai, Ngong, Kikuyu, Meru, Nyeri, Embu, Nanyuki, Kisii, Kakamega, Kitale and all surrounding areas. Find real estate in Lavington, Kilimani, Muthaiga, Karen, Westlands, Runda, Kileleshwa, Kyuna, Loresho, Green Park, Langata, Whispers, South B, South C, Gigiri, Embakasi, Nyari, Nyali, Mtwapa, South Coast, North Coast, Upper Hill, State House, and neighbouring estates. Find properties listed by top real estate agents in Kenya such as Lloyd Masika, Hassconsult, Century Properties, Villacare, CBRE, Accord Properties, Crystal Valuers, Regent, Paragon, Crown Homes, Hectares, Villa Care Kenya, Colburns, Hass Consult, Neptune Shelters, Cornerstone, Halifax, Citivillas, Latida, Premier Realty, Penny Lane, Gigi, Ferndale, Canopy, Muigai Commercial, Property World, Primelands, Realmast, Ryden International and many more. Properties plots homes and houses for sale or to let rent or buy in kenya nairobi mombasa kisumu kenya real estate and real estate agents directory