Myspace Properties CEO Mwenda Thuranira has come out to challenge the government plan to construct one million affordable housing units by 2027.

In an article on The Star newspaper, Thuranira opined that while the vision is commendable, the execution remains a significant challenge as the government, unlike private developers, lacks the experience and efficiency necessary for such large-scale real estate development.

The real estate expert also noted that these units are being constructed on public land yet their prices are nearly the same as those of private sector developments, where land acquisition and construction are fully self-financed.

According to him, the government should focus on creating an enabling environment for private developers to build more affordable housing rather than positioning itself as the primary developer.

“Government is a facilitator, not a developer. Governments worldwide are most effective when they facilitate economic growth rather than directly engaging in business. The same principle applies to housing,” he stated.

One of the ways the government can make affordable housing a reality without stepping in as a developer is by stabilizing and lowering land costs, one of the biggest cost drivers in real estate development.

Affordable Housing units prices per unit size, where to find them

“The government can play a crucial role in stabilizing and lowering land costs through mechanisms such as a Land Price Index, which would provide a transparent and standardized valuation system and kill speculation that drives land prices skyward,” Mwenda added.

Additionally, the Kenya Kwanza Administration should optimize zoning regulations and urban planning policies to encourage well planned high-density developments in key areas, making land use more efficient.

The government should also work towards reducing the cost of essential building materials through tax incentives, subsidies, and import duty reductions where necessary.

“Countries like Singapore and South Korea have successfully managed to provide affordable housing by reducing construction costs through strategic partnerships with private developers and material manufacturers.”

“Kenya can learn from these models. Engaging Private Developers for Sustainable Housing. The government’s affordable housing project can benefit greatly from collaboration with mainstream developers, and professional associations such as Architectural Association of Kenya (AAK).”

By offering incentives such as tax breaks, subsidized infrastructure, and expedited approvals, the government can encourage private developers to take on more affordable housing projects.

A model worth considering is the Public-Private Partnership (PPP) approach, where the government provides land and incentives while private developers undertake the actual construction.

“Such a framework would not only fast-track the completion of housing units but also ensure quality standards are met while leveraging the private sector’s ability to deliver at scale,” Mwenda noted.