Kenya to fast track slum upgrade program

Kenya plans to fast track its slum upgrading program to improve people's living and working conditions in slums and other informal settlements, an official said on Thursday.

Cabinet Secretary in the Ministry of Transport, Infrastructure, Housing and Urban Development James Macharia told journalists in Nairobi that the program involves countrywide mapping of 498 slums, tenure regularization, as well as installation of critical social and physical infrastructure.

"The program further aims at planning for urban growth... to minimize expansion of existing slums," Macharia said during the opening of the 25th Kenya Homes Expo.

The four-day event will bring together players in real estate, construction, finance, interior decor and other related industries to showcase diverse products, services and share experiences.

Macharia said Kenya is urbanizing at rapid rates, resulting to a serious housing deficit of about 200,000 units annually, which leads to the expansion of slums.

He said this gap can only be bridged through strong partnership involving developers, land owners, financiers and facility managers.

"To achieve this, the ministry will continue working closely with commercial banks, financial institutions, cooperatives, pension fund managers and development partners to develop alternative housing financing strategies," Macharia said.

He said that despite a rapid expansion in the real estate sector, over 60 percent of urban dwellers live in slums.

According to government data, the real estate market contributed nearly 11 percent to the country's gross domestic product (GDP) in 2016.

The growth in real estate has been driven by government investment in infrastructure, favorable demographic trends and a growing middle class. Endit