Industry News

Builders Seek Lion’s Share in Affordable Housing Deals

Kenyan experts will aid formation of home-made solutions to the local housing problems.

Updated on

January 3, 2019

Workers assemble a precast wall of an apartment. PHOTO | FILE

The scramble for President Uhuru Kenyatta’s ‘Big 4 Agenda’ monies is currently underway with local construction professionals demanding 60 per cent of contracts for the planned low-cost housing scheme.

The professionals, who include architects, engineers, environmental design consultants, and project managers, reckon that the involvement of Kenyan experts will aid the formation of homemade solutions to the problems bedevilling the local housing market.

This will create jobs, and generate demand for locally made building materials while offering new value for various specialists in the construction sector, according to the Architectural Association of Kenya (AAK) president Emma Miloya.

In a letter to the Transport, Urban Development, and Housing Secretary James Macharia, AAK wants the government to uphold a ‘Buy Kenya, Build Kenya’ attitude in the Affordable Housing Programme deals – which means foreigners should only be contracted where local professionals lack requisite proficiencies.

The lobby has urged the ministry to develop a structure guiding the apportionment of project value, suggesting that local consultants should be given a minimum of 60 per cent of consultancy fees, while at least 40 per cent of project value should go to local contractors engaged in joint ventures.

“Joint venture teams must have local consultants and contractors where any perceived technology gaps can be filled by foreign consultancies but only in instances where locals lack such skills,” the letter said.

AAK also wants manufacturers to be assured that at least 50 per cent of the construction materials required for the scheme shall be sourced locally.

It remains to be seen whether the government will meet the new demands considering it has already fashioned an Engineer-Procure and Construction plan that is seen as an incentive to wealthy foreign investors to help expedite the country’s ambitious plan to deliver 500,000 new homes in five years.