1. STAFF SENSITIZATION WORKSHOP
Theme: “Understanding the Affordable Housing Program”
Topic: Role of the National Housing Corporation in the Affordable Housing Program   

2. Presentation Outline About National Housing Corporation Introduction
Government Policy on Affordable Housing
Role of NHC in the AHP
Conclusion

3. About National Housing Corporation
National Housing Corporation is established under the Section 3 of the Housing Act Cap. 117 Laws of Kenya.
The primary mandate of the Corporation is to develop and facilitate development of housing for Kenyans through;
Control of the Housing Fund,
Recover loans granted from the Housing Fund,
Forging partnerships in housing development,
Mobilize capital for housing development,
Undertake and encourage research in housing related matters and;
Operate a housing finance institution.

4. Products & Services HOUSING THE NATION Tenant Purchase Houses;
Rental Housing;
Houses for Outright sale;
Rural and Peri-urban housing loans;
Site and Service scheme;
Project and Estate management;
Consultancy Services; and
Manufacture of Expanded Polystyrene (EPS) panels.
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5. Introduction HOUSING THE NATION
Housing is central to the socio-economic development of any country.
It contributes both directly and indirectly towards poverty reduction.
Chapter four, Article 43 (1b) of the Constitution of Kenya, 2010 states that every person has the right to accessible and adequate housing, and to reasonable standards of sanitation.
Government of Kenya has an obligation to provide and/or facilitate its citizens to access safe, decent, affordable, inclusive and sustainable housing.
Introduction
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6. Introduction HOUSING THE NATION
Social Pillar of Kenya Vision 2030 (Housing and Urbanization), the Government envisions “an adequately and decently housed nation in a sustainable all inclusive environment.”
We are currently implementing the Third Medium Term Plan (MTPIII), which identifies specific goals and the resulting flagship housing projects under the social pillar.
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7. Government Policy on Affordable Housing
Delivery of affordable housing is one of the four critical pillars (“Big Four”) of the current administration
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8. Recap on the Big Four Agenda
What the Big Four Agenda is Not:
What the Big Four Agenda is:
Direct translation of the President’s wishes or aspirations
… a prioritised set of initiatives borne out of national conversation between H.E. and the people of Kenya, and addressing the most pressing concerns facing Kenyans
A new national plan, disconnected from the Vision 2030
… firmly rooted in the Third Medium Term Plan for the Vision 2030 from to 2022
Direct translation of the regular Ministry or parastatals work plans.
… a well thought out plan that captures prioritised initiatives required to directly achieve set targets
Open ended implementation plan
…. a time bound implementation plan with most initiatives scheduled to be completed by 2022
Some entities were dumping current workplans to develop new plans. That is not the idea. Or trying to do projects that cannot be undertaken in five years. Regular ministry/entity initiatives can proceed but identify priority programmes in your regular programmes that can be achieved in five years towards the Big 4 – rabbit meat project; aircraft manufacturer hub by 2022
Original plan was that current budget is achievable. In theory its fundable from existing budgets. Budgets would only be enhanced for projects that have proved successful and were not originally funded adequately.
Procurement funded initiatives are the problem. Its more policy oriented. E.g. the buying of tractors, but encouraging private sector policies that encourage the leasing of tractors etc. No benchmarking required, no new projects required.
Silo focused plan, focusing on only on initiatives the overarching pillar
… an inter-connected plan that requires a ‘whole-of-government’ implementation approach
Open ended and procurement driven plan, backed by a constant flow of funding from the exchequer
…. a policy driven plan, to be principally funded from existing budget

9. Affordable Homes Pillar: Investment Opportunities
Direct investment in the construction of affordable homes and provision of social services
Construction of social, low-income and mortgage gap housing (crowding-in private sector funding and p/ship with county and national gov.
Construction and operation of social and commercial amenities within developments i.e. education, recreation, health facilities and operation of transport systems
Construction and operation of mass rapid transit systems within urban centres
Financing of affordable homes
Investment in the Housing Fund which will provide units off-take and long- term financing for home buyers
Investment in the provision of affordable long term Tenant Purchase Schemes (TPS) to low-income earners through the Housing Fund
Provision of credit enhancement for developers and the Housing Fund e.g. wraps, mitigation covers, etc.
Low cost construction products and services
Local manufacture of construction materials e.g. cement, iron rods and woodwork through direct investments or partnerships
Scalable low-cost construction technology and modern innovative building technologies
Provision of insurance services (construction and housing insurance)

10. State Corporations will play direct roles in delivering on each of the Four pillar initiatives
EPZA; KIRDI; KENINVEST; Kenya Leather Development Council; Kenya National Accreditation Service; Kenya Bureau of Standards; KIE; Numerical Machining Complex; etc.
KARLO; NIB; NCPB; AFFA; KEVIVAPI; Commodities Fund etc
Kenya Medical Laboratory Technician and Technologists Board; KMPD Board; KEMRI; KEMSA; National Quality Control Laboratories; KMTC etc.
National Housing Corporation, National Construction Authority etc.
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11. and deliver on critical enablers
and deliver on critical enablers.... Examples of State Corporations involved (not exhaustive)
KENHA; KPA; KCAA; Kenya Ferry Services; KMA; Kenya National Shipping Line; KPA; KR KURA; KERRA; LAPSSET; NTSA etc
NITA; NYS; HELB; KICD; KNEC; NACOSTI; TIVETA, KUCCPS; YEDF etc
ERC; GDC; KETRACO; KENGEN; KPLC; REA; etc.
All service corporations; ICTA; PPRA; CA; Kenya National Innovation Agency
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12. Role of NHC 1. Participation in Development of Housing units
The Corporation will represent the National Government in the Special Purpose Vehicle (SPVs) to be formed with private sector development partners.
2. Off-take of Developments
The Government will assure developers off-take of the housing development. The Corporation will be the off-taker of the housing developments as per the Affordable Housing Program Development Guidelines.
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13. Role of NHC cont’d… 3. Advance Housing Loans
The Corporation will advance loans to members of the Housing Fund for construction or purchase of affordable housing.
NHC will build on its many years experience in managing the Rural Housing Loans programme to ensure efficiency in the management of Housing Loans Program.
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14. Role of NHC cont’d… 4. Management of the Housing Fund
Registration of employees and employers:
This will be done through a robust ICT system which will
ensure that Clauses 4(1) & 4(2) of Legal Notice No 238 (the
Housing Act) are complied with. The Corporation will
conduct scheduled audits of the ICT system to follow-up
on both employees and employers registration with the
Affordable Housing Programme.
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15. Role of NHC cont’d… Registration of voluntary members:
NHC will work-out an out-reach program to ensure that
person under the voluntary members category are
registered in the Affordable Housing Program. This will be
done by working in close liaison with registered
Cooperative Societies, Juakali Associations and
Professional Associations.
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16. Role of NHC cont’d…
Put in place a monitoring system to ensure that employers keep an updated register of particulars of the employees [Clause 5(1a)]. This will be done through quarterly reports to be submitted by all employers to the Corporation through the ICT system.
Create confidence of the members on the Housing Fund by establishing and maintaining “Members Housing Fund Accounts”. The Corporation will ensure that statements on the accounts will be accessible to members at the end of every financial year.
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17. Role of NHC cont’d… 5. Management of Tenant Purchase Scheme
Some houses in the Affordable Housing Program will be managed under the Tenant Purchase Program. NHC will make use of its many years experience in managing tenant purchase schemes nationally to ensure an efficient Tenant Purchase Scheme is put in place for each housing estate.
This will involve maintenance of members’ tenant purchase loan accounts, service charge accounts and formation of estates’ management companies/Corporations.
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18. Role of NHC cont’d… 6. Management of Rental Leases
Where houses are determined to be for rent, the Corporation will ensure efficient management of the rental leases. This will be done through a well functioning ICT system which will ensure that rent payments and facilities management are done.
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19. Conclusion HOUSING THE NATION
Affordable housing delivery in Kenya will require collaboration by all the key stakeholders
The country needs to increasingly adopt use of rapid industrial building technologies
There are immense opportunities for all players in the successful delivery of affordable housing
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20. HOUSING THE NATION

21. HOUSING THE NATION

22. National Housing Corporation N.H.C. House; Aga Khan Walk
P.O. Box
Tel: /9
Website:
Facebook: National Housing Corporation- Kenya