Housing Principal Secretary (PS) Charles Hinga revealed that the prices of land in Nairobi were rated among the most expensive in the World.
Speaking on Friday, February 17, during the Induction of the Senate Committee on Roads, Transport and Housing, Hinga explained that the high pricing was a result of land holding among many landowners in the city.
The CS explained that land holding was a hindrance to development and land investment adding that it additionally caused an upsurge in land prices as many scrambled for the remaining land put up for sale.
Moreover, the PS urged land owners to pave way for the implementation of the affordable housing program by selling their land to investors who would put up development projects on the pieces of land instead of letting their primed parcels stay idle.
“A majority of Kenyans live in places without basic services and lack proper sanitation.
“92% of people in Nairobi rent houses because they can’t afford to buy one. Affordable housing will reduce informal settlements and ensure Kenyans have access to decent, affordable and adequate housing,” Hinga stated.
He added that the affordable housing program would additionally enable economic recovery by connecting small businesses to the projects while also creating jobs for youths.
So far, the government is also exploring a new tax scheme that will be imposed on idle land across the country.
An analysis done by kenyans.co.ke in April 2021, revealed some towns and estates in Nairobi that had seen the biggest spike in land prices.
The report, drawn from an analysis of years of the Hass Land Index publications, revealed estates like Donholm, Ruaka, and Muthaiga had recorded high spikes in land prices.
The data showed that by December 2020, land in Donholm Estate had recorded a Ksh6.9 million increase.
One acre of land that sold at Ksh63.9 million in January 2017 in the estate, sold at Ksh70.8 million by December 2020.
Moreover, land in Ruaka registered a Ksh9.7 million increase in land prices, and one acre of land in December 2020, sold at Ksh90.2 million from Ksh80.5 million in 2017.
In addition, the analysis revealed that the price of an acre of land in Muthaiga, which was pegged at Ksh148.2 million in January 2019, increased to Ksh175 million in December 2020, recording an increase in price by Ksh26.8 million.
Earlier on Wednesday, February 1, Ruiru Member of Parliament Simon King’ara, tabled a bill in Parliament seeking to tighten measures required by stakeholders in purchasing and selling public land in Kenya.
According to King’ara, if passed into law, the bill would eliminate land fraud by ensuring that land was not sold for less that the market value.
The law would require land to be sold to the highest bidder through a public auction and the government would ensure that land set aside for investments would benefit the local communities.
Source: kENYANS.CO.KE
