High urbanization Rate is Putting Pressure on Access to Basic Shelter and Social Facilities
Pan-African housing development financier Shelter Afrique has said that Kenya is urbanizing at a rate higher than the continents average thus putting pressure on access to basic shelter and social facilities.
Shelter Afrique Chief Executive Officer Andrew Chimphondah noted that Kenya’s urbanization rate of 4.2 percent was way above the continent average of 3.5 percent and has left a significant number of Kenyans living in slums.
Chimphondah, however, praised the Kenya Government on her commitment to increasing affordable housing supply, one of her Big four Agenda, which promises to provide 500, 000 affordable housing units by 2022.
He said housing affordability continues to be a key challenge in country given the current high cost of funding and unavailability of financing, among rising property prices.
According to the Kenya National Bureau of Statistics, 74.5 percent of the Kenyan population earn Sh49, 999 (US$487) a month or below in the formal sector.
He said Shelter Afrique was encouraged by the formation of the Kenya Mortgage Refinance Company (KRMC), which will provide long term lending to commercial banks, microfinance banks and Saccos to allow them to extend mortgage loans to eligible mwananchi over a longer period and at a lower cost.