By Patrick Githinji

National Housing Corporation will construct more houses to meet the overwhelming demand from purchasers who missed out in the sale of houses in Langata phases 2 and 3.

Speaking in Nairobi while handing over the Langata housing units, NHC Managing Director, James Ruitha, said the corporation would soon begin the construction of phases 4 and 5. Once complete, the housing project will have 900 units.

He maintained that they would not hike prices for the housing units. Instead, they would price the houses at a lower rate than those in the open market to make them affordable.

The a three-bedroom house will retail at between Sh3 million and Sh5 million, cheaper than the Sh7 million price tag offered by private investors.

In urban centres, it is estimated that the housing deficit stands at 150,000 units, despite numerous projects coming up every year.

Ruitha attributes the shortage to the diminishing space available to put up structures, as well as fluctuating land prices leading.

However, he said the reduction in stamp duty on mortgage, which was dropped from 0.2 per cent to 0.1 per cent in this year’s budget, would encourage Kenyans to own houses.

"We welcome the removal of import duty on petroleum coke, a raw material used in cement production, a key component in the construction of houses."

He remains hopeful that the changes will be reflected in lower cement prices, which will lower the cost of construction, and cut the selling price for ready houses.

NHC Chairman, Bosire Ogero, said the parastatal was down to its last piece of land in Nairobi’s Langata area, and was under immense pressure to construct low cost houses for Kenyans.

"We also have a problem with the processes of land allocation for housing developments in urban areas. When land is allocated to us, it ends up being grabbed," Ogero said.

He said the price of land in Nairobi and surrounding areas had doubled in the last three years due to increased demand, locking out the working class from home ownership, and cutting the number of families who own homes from 30 per cent, to about 12 per cent in the last four years.

Ogero also chided local municipalities, whose approval process were said to be slowing down the pace at which developers could put up housing units.