State advertises tender for construction of 32,000 houses

 Casual workers offering services at an affordable housing project site in Mukuru, Nairobi. [Denish Ochieng, Standard]

The Ministry of Lands has advertised tender for construction of houses for government officials and residents in 33 constituencies.

The ministry invited interested contractors to send their bids for round three which was opened on Wednesday and will close on August 17 for 25,000 houses for government officials and 7,000 for residents.

"The government is accelerating the delivery of housing agenda and will be posting potential projects for bidders through bids rounds. The bid rounds will enable interested and eligible parties to express interest in the listed projects," read the advert in the dailies.

The 25,000 houses will benefit the National Police Service, the General Service Unit, Kenya Defence Forces and student hostels for Masinde Muliro, Chuka, Tom Mboya, Embu, Meru, Maseno universities and University of Eldoret.

The State Department for Housing advertised tender for construction of houses in Nandi, Elgeyo Marakwet, Busia, Kiambu, Nyeri, Narok, Murang'a, Uasin Gishu, Garisa, Meru, Kajiado, Migori, Samburu, Makueni, Baringo, Bungoma, Nakuru, Taita taveta, Mombasa and Kwale counties.

Others are Nyandarua, Kericho, Kisumu, Kisii, Kitui, Lamumarsabit and Siaya counties.

State House spokesperson Hussein Mohamed said President William Ruto's government is rolling out the Affordable Housing Programme’s 200 units per constituency project.

Hussein said that with 290 constituencies across the country, this project has the potential to construct 58,000 housing units, foster localized economic growth and employment opportunities at the constituency level.

"The housing pillar of the Bottom-Up Economic Transformation Agenda (BETA) not only aims to improve the quality of life for people but also serves as an economic stimulus, promoting enterprise growth and job creation," he said.

The State House spokesman said that each housing unit creates three to five direct jobs and up to eight indirect jobs. Since President Ruto took office, construction of 36,092 housing units has been initiated in various regions, resulting in substantial number of jobs.

He said the overall target of constructing 200,000 affordable housing units annually will create between 600,000 and 1 million jobs.

Last week, the Court of Appeal approved the implementation of the Finance Act 2023 thus allowing the government to access 1.5 per cent tax from salaries of employed Kenyans to fund construction of houses.

Recently, Housing Principal Secretary, Charles Hinga told the Senate committee on Roads, Transportation and Housing that the government is committed to build 200 housing units per constituency in the 2023/24 financial year.

"We have reduced the cost of a three-bedroom house from the commercial price of Sh11 million to Sh3 million," said Hinga. 

In the Affordable Housing Programme, a one-bedroom house will be sold at Sh1 million, two bedrooms at Sh2 million and three bedrooms Sh3 million.

The tenants will pay the loans for 30 years at the monthly installment of Sh5,000 for I bedroom, Sh10,000 for 2 bedrooms while 3 bedroom units Sh15,000 per month.