Low cost housing designs in Kenya

makaoMortgage financier Housing Finance (HF) has unveiled an initiative that will make it possible for Kenyans to own homes for as little as Sh1.6 million.

The initiative dubbed Makao housing project offers land owners with an option of 57 different home designs with the price ranging between Sh1.6 million and Sh27 million.

The price, according the to the lender, will cater for professional fees of architects, legal advisers, project managers, engineers, quantity surveyors and consultants.

“Makao seeks to address the key challenges home owners face during the construction period, which include poor supervision, cost over-runs, fluctuating prices of materials, delay in completion of project, poor quality materials, theft and unqualified masons,” said HF managing director Frank Ireri.

Mr Ireri said the initiative, which was introduced in 2007, will save home builders up to 30 per cent in costs, adding that his company will offer entire financing.

READ: HF announces 105% finance for mortgages

Makao housing projects will have a delivery period of between three and nine months depending on design, with the home owners having a choice to determine quality of finish between basic, standard and high end.

HF joins a growing list of firms eyeing the low-cost housing market. In 2012, Jamii Bora Makao, managed by Urbanis Africa, unveiled several low income home projects in Kisaju near Nairobi.

The initial phase of the project involved construction of 950 low cost homes, with a two-bedroom unit going for as low as Sh1.5 million.

In phase two, which was unveiled towards the end of 2012, the company is constructing 1,250 low cost housing units in Isinya, Kajiado County. The project consists of three and four bedroom units going for Sh2.5 million and Sh5.4 million respectively.

Last year, Urbanis Africa launched another low-income project in Kisaju plains – 55km from Nairobi. The development sits on 115-acres of land.

Chase Bank’s subsidiary Rafiki Deposit Taking Micro-finance is also eyeing the low-end market billions. In 2012, the lender launched a mortgage product targeting low-income earners.

READ: Rafiki DTM launches Sh1m mortgage

Rafiki DTM finances homes built using low cost technologies with prices ranging between Sh1 million and Sh3 million on loans payable over a 10-year duration.

The firm finances 100 per cent of construction costs for landowners and a further 70 per cent of the cost of land for landless individuals.

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