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    Ghana’s inflation rate rises again; hits 31.7% in July 2022

    Fitch downgrades Ghana’s credit rating from B- to CCC

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    GIPC and GSE sign MoU to attract more investment into Ghana

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Kenya:World Bank pushes for PPP to curb homes deficit

bycitibusinessnews
April 18, 2017
in Africa, East Africa
Share on FacebookShare on TwitterShare on Whatsapp

The World Bank says Kenya should collaborate with real estate firms to raise access to low-income houses.

In its latest report on housing, it says a public-private partnership, where the government provides land while the private sector builds the houses, could see prices fall drastically.

The bank’s lead financial sector specialist and co-author of the report, Mehnaz Safavian, says the government should also support the housing sector by helping the private sector source for low-interest financing from social development financial institutions and providing basic infrastructure.

In an earlier interview, Letas Developers chief executive Patrick Muchoki said land was a major hurdle to the provision of affordable housing.

To boost confidence in housing products on offer, the World Bank urged the government to ensure all deals between house buyers and developers were above board thereby averting incidents in which prospective house owners lose cash to shadowy housing companies.

The report, which offered a four-point remedy to the housing deficit, said Kenya provides about 50,000 houses against a 200,000 demand for homes annually.

“The production of housing units is below the target number culminating in a housing deficit of over two million units out of which 61 per cent live in slums. This deficit continues to rise worsened by increased urbanisation rate of 4.4 per cent equivalent to 500,000 new city dwellers every year,” it noted.

–

Credit: Business Daily

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