M a r k e t N e w s
Kenya: Portland Cement Seeks Partnership from Govt in Housing Deal
Posted on : Saturday, 16th April 2016
East African Portland Cement Company (EAPCC) may be wooing the government into a real estate deal after the company failed to get approval to sell part of their land last year.
The listed cement maker's chief operating officer Albert Sigei told Lands Cabinet Secretary Prof Jacob Kaimenyi this week that the company was interested in partnering with government to put up low cost housing on its vast properties in Athi River.
"I know you are passionate about low cost housing and we have ample space on our land in Athi River we are willing to talk about a partnership to develop mass affordable houses," Mr Sigei said at the launch of the 23rd Kenya Homes Expo in Nairobi.
Last year, the State rejected a proposal by EAPCC to dispose 1,300 acres of land it has exhausted mining raw materials from in Athi River.
EAPCC is owned by the government, the National Social Security Fund (NSSF) and French cement conglomerate Lafarge.
The company's managing director Kephar Tande had said that most of the EAPCC land in Athi River, Machakos County and parts of Kitengela in Kajiado County could be used to build homes and industries or rehabilitated into forests but the government refused to greenlight the deal.
Mr Sigei did not give more details about the proposal and stated he was not willing to comment about it when the Nation sought clarification.
Low cost housing
Meanwhile, CS Kaimenyi urged private developers to consider putting up low-cost products that are accessible to middle and low income earners.
"Seventy five per cent of all workers including the public sector earn less than Sh25,000. If you talk about a 3 bedroom house of over Sh6 million even if you give them a loan, is it affordable?" CS Kaimenyi posed.
He urged developers to come up with community prices products that could go for under Sh1 million to cater to the 66.2 per cent of the urban population who live in rental homes.
The CS said the government would provide incentives including setting up a one stop shop to issue documentation for developers and reduce levies charged by National Construction Authority (NCA), National Environmental Management Authority (NEMA).
During his State of the Nation address, President Uhuru Kenyatta called for an immediate review of the charges levied by NEMA and NCA, terming them prohibitive.
NEMA charges 0.1 per cent of a project's cost for environmental audits while the NCA has a 0.5 per cent levy to run its operations.
Source : allafrica.com
