Kenya needs better laws for cheaper houses

The chief executive officer of the Kenya Property Developers Association (KPDA) Elizabeth W. Mwangi Oluoch talk to the Standard during a meeting at Serena hotel. PHOTO: JACOB OTIENO

NAIROBI: In which areas is KPDA engaging the Government on housing provision?

Infrastructure takes up a good portion of the overall costs. These costs can be greatly reduced if government appreciates the efforts of developers to put infrastructure in place.

KPDA (Kenya Property Developers Association) is lobbying the Government to provide incentives such as tax relief for developers who take up the role of providing basic infrastructure and social amenities on their developments.

In addition, our members are keen to establish a formal partnership with the government that would see citizens own homes at affordable prices.

ANY SUCCESSES?

We have spearheaded the improvement of existing and the drafting of new statutes that potentially affect the efficiency of administrative roles being carried out in the property industry.

We have also explored partnerships between public and private sectors so that financiers, public bodies as well as landowners can create a better working environment in the building and construction sector.

We believe improving the relationship between developers and regulators will create a better business environment in property development.

Does that mean the many laws governing the land and construction sectors are inadequate?

Without a doubt, matters dealing with land are very sensitive, hence stringent laws are required to regulate the industry. However, it is our hope that these laws and policies will be harmonised for the sake of clarity and purpose. In turn, this will reduce and eventually eliminate opportunities for mischief in the construction sector.

You state that you develop innovative financing mechanisms to help low and middle-income Kenyan families own homes. What exactly are these mechanisms?

Some of our members provide various financial options to Kenyans to own homes. For example, we have Optiven Limited who allow clients to purchase their serviced plots in flexible installments.

In addition, Karibu Homes in conjunction with Shelter Afrique and the European Investment Bank are providing affordable housing solutions by developing homes that cost Sh1.8 million.

Talking of affordable housing, what are private developers doing to lower housing costs that are still considered out of reach for many Kenyans?

KPDA members work closely with the Ministry of Housing to discuss matters dealing with regulation, taxation and cost of land.

These are the key issues that affect the overall cost of the finished product. If these issues are addressed, they will translate into reduced cost of development and ultimately reduced prices for prospective homeowners.

How can Kenya sustain the momentum that has seen the housing sector emerge as a key driver of the economy?

This is only possible through regular engagement with regulatory authorities mandated with keeping check on the property industry such as the National Construction Authority.

Some players in the sector have been accused of constructing sub-standard houses. What mechanisms has KPDA put in place to discipline such errant members?

Our members must adhere to the KPDA Code of Conduct, which requires them to discharge their services with a high level of honesty, integrity and in accordance with the laws of the country.

The code also holds the customer and the general public in high regard as well as mandating our members to conduct business with each other ethically and create a better business environment in the sector.

How are you facilitating the uptake of Real Estate Investment Trusts (Reits)?

KPDA held a breakfast forum in February this year where we discussed Reits at length.

Speakers at the forum were from the Nairobi Securities Exchange, Capital Markets Authority, Housing Finance, Stanlib Kenya and Mohammed Muigai Advocates.

Through the forum, we sensitised our members on the issues affecting the industry and provided an avenue for them to raise queries and concerns on Reits. KPDA will be holding a similar event to encourage the uptake of this significant investment opportunity.