Kenya's Collapsing Bid to Build Low-Cost Houses

Nov 19, 2018 | The EastAfrican: All Africa

Kenya faces a difficult task attracting developers to a low-income housing sector that has been ignored for a long time due to its low returns. The government wants to deliver at least 500,000 low-cost housing to its citizens in the next five years.

Kenya faces a difficult task attracting developers to a low-income housing sector that has been ignored for a long time due to its low returns. The government wants to deliver at least 500,000 low-cost housing to its citizens in the next five years. Property consulting firm Knight Frank said developers have shunned the low-end property market due to its high risks and low margins. The government will therefore be required to offer more tax incentives in addition to free land to attract investors to build low-cost housing. Low margins "Essentially, low-cost housing is not profitable for developers. The margins are low, so is not economically viable for developers. Developers have shied away from such projects because they relatively high risk," Ben Woodhams, the firm's chief Executive told The East African. "Developers want to see at least 20 per cent profit margin on development and can't get it on low-end housing market," he added. Read the full article from All Africa. Source: All Africa