The National Housing Corporation (NHC) has unveiled a bold strategic plan for 2023-2027, aiming to provide 110,000 Affordable Housing Units and revolutionize the mortgage sector.

Speaking on the groundbreaking initiative, an NHC spokesperson declared, “The government aims at increasing the number of mortgages from the current 30,000 to 1,000,000 from 2023 – 2027 by enabling low-cost mortgages of Ksh 10,000 and below.”

The corporation’s innovative financing model will involve County Governments financing 100,000 Affordable Housing units, while an additional 5,000 units will target the commercial market on NHC’s land. In a move to address the shortage of student housing, NHC plans to construct 5,000 rooms for student accommodation.

To fund this ambitious endeavor estimated at Ksh 361.9 billion, NHC will mobilize Ksh 340 billion from external sources, with a commitment of Ksh 250 billion within a five-year period. The government is set to contribute Ksh 50 billion through budgetary allocations, with Ksh 200 billion to be sourced from pension funds.

NHC highlighted the necessity for a Ksh 57.9 billion government allocation to unlock Ksh 200 billion from pension funds and private sector investments.

The corporation also aims to tap into collective investment schemes, including Diaspora bonds, to secure financing for construction projects. This initiative marks a significant step towards providing accessible housing and affordable mortgages for Kenyans.