Wahome, PS put to task over affordable housing

The controversy surrounding the affordable housing programme manifested on Tuesday as senators put Lands CS Alice Wahome and Housing PS Charles Hinga to task over its implementation.

During a meeting with the Senate’s Roads, Transportation and Housing Committee, Wahome and Hinga were confronted with a barrage of questions as senators sought to comprehend the contentious project.

In the session where the two leaders were expected to defend the State Department’s Budget Policy Statement, the senators demanded to know why Kenyans were being taxed for the construction of houses they are not guaranteed to get.

In addition, the legislators wanted to know why the projects were being built on government land, some of them without title deeds, and the reasons behind the low uptake of the housing levy fund.

“Kenyans are paying a housing levy, and the land [where the houses are being constructed on] is provided by the government, why are you selling them to Kenyans?” Laikipia Senator John Kinyua posed.

Kitui Senator Enoch Wambua asked, “Why are we selling houses built by the government using money (taxes) donated by other people?” Committee chairman Eddy Oketch (Migori) sought to know why billions meant to implement the project were still lying in the bank.

“I’m concerned about the low absorption of the housing levy fund and where that money is banked. Is it at the Commercial Bank or the Central Bank?” he posed.

In their response, the ministry’s top officials, while admitting the projects were being undertaken on government land, some without titles, assured the government would issue the crucial documents to the beneficiaries.

“The houses are given on a tenant-purchase arrangement. The title is not needed immediately when we are building. But on the completion of the units, we will be able to get the geo-referencing to be able to develop sectional titles,” the CS said.

She added, “So, there is no danger.”

The CS disclosed that 4,888 houses have been completed with keys set to be handed over to the beneficiaries at any moment. '

Some 27,000 people applied for the houses. PS Hinga said the taxes Kenyans are paying for the Housing Levy Fund are meant to subsidise mortgages for successful applicants.

For Kenyans applying under the social housing programme, the state imposes a three per cent interest rate while those seeking affordable housing pay six per cent.

“Those people in the social housing category get the most help. For example, they pay an interest rate of three per cent, they don’t need to pay a deposit, they are given up to 30 years to pay for that house,” he said.

The PS attributed the low absorption of the housing funds to delays in the disbursement of funds by the affordable housing board, which were caused by the lengthy consultations between the National Treasury and the CBK.