Why schemes don't invest in real estate

International Finance Corporation (IFC) has raised concern over inability of local pension schemes to invest in the property industry.

Programme manager of housing in charge of Sub-Saharan Africa at the World Bank member institution, William Britt noted that though the schemes are liquid, they lack sound vehicles to enable them tap into the housing industry.

He said currently only profit driven private sector are providing housing units though mainly to the middle and upper class segments.

“However, even private sector in Africa is yet to be harnessed well to help ease the huge supply gap facing the housing industry in the continent,” he observed during a panel discussion on housing in Africa.

During the session, housing stakeholders stated that the future of housing in Africa will depend on the shift in focus towards rental housing.

Addressing the meeting in Nairobi, Shelter Afrique’s Director of Business Development and Operations Femi Adewole said even as people continue aspiring to own homes, there is need to establish a formal rental housing system.

Principal Secretary Ministry of Lands, Housing and Urban Development, Mariamu El Maawy noted that housing industry is grappling with shortages due to influx of people migrating from rural to urban areas.

“Our country is grappling with huge supply gap to the tune of between of 200,000 and 250,000 housing units every year. Currently, supply is only catering for the middle and upper class segments as the rate on returns is high,” Ms Mariamu stated.

She however, added that the Government was striving to ensure the goal of providing all Kenyans with affordable and low cost houses is achieved.