Kenya’s affordable housing agenda

Kenya's affordable housing plan, aiming to deliver a minimum of 200,000 housing units annually, is gaining momentum despite facing numerous challenges. The significant investment required is expected to revitalize growth in the construction industry, which had previously slowed down. CNBC Africa's Aby Agina recently sat down with Shammah Kiteme, President of the Institution of Engineers of Kenya (IEK), to discuss the investment prospects in Kenya's infrastructure sector. Kiteme highlighted the country's infrastructure potential, particularly in sectors such as energy, water, roads, and the blue economy. He emphasized the existence of regulatory frameworks, including the Building Code of 2024, the Energy Act of 2019, and the Water Act of 2016, to govern and regulate infrastructure development in Kenya. Despite the established regulatory structures, Kiteme stressed the continuous need for improvements to meet the high demand for infrastructure. He also mentioned the shift from traditional financing models to public-private partnerships (PPP) to attract private sector investment for infrastructure projects. The government's implementation of the affordable housing plan has sparked interest among investors. The housing levy law, imposing deductions from working Kenyans for affordable housing, has facilitated progress in this sector. Moreover, Kiteme mentioned ongoing activities leading up to Mashujaa Day, focusing on urbanization and affordable housing as key priorities. In the energy sector, private sector involvement has been growing, with discussions and agreements taking place between public and private entities. However, concerns about transparency and local involvement persist among the Kenyan population. Similar agreements have been observed in road and water sectors, raising questions about local content inclusion and the benefits for Kenyan citizens. The conversation highlighted the need for balancing investments with local participation to ensure mutual benefits. In terms of regional regulations, efforts are being made to streamline compliance and facilitate labor movement across East Africa. Kiteme emphasized the importance of regulatory frameworks that support free movement of goods and labor to enhance business operations. He discussed the East African protocols and the African Continental Free Trade Area as mechanisms to promote integration and ease of movement within the region. Kiteme shared examples of mutual recognition agreements among East African countries, allowing engineers to work seamlessly across borders. Despite challenges, he underscored the necessity of fostering a conducive regulatory environment to promote economic growth and integration in Africa.