Mizizi Africa Homes sees a shift of focus in Kenyan politics to economic and social protection easing uncertainty in housing markets this election year.
The developer projects a more stable housing market, on rising economic growth trends in election years and as leaders focus their campaigns towards a greater good for households and businesses.
“This year is pretty different compared to other past election years. At a time like this, a number of people would be thinking of going back to their tribal cacoon instead. This is not happening partly supported by the fact that political leaders are uniting us through discussions on economic and social issues,” said Mizizi Africa Homes Chief Executive Officer, George Mburu.
Kenya’s economic cycles in 2013 and 2017 grew slightly compared to historical dips in economies over the past years, with unemployment easing from 7.9 percent at the start of 2013 to 7.2 percent by the close of the year. In 2017, the economy grew by 0.62 percent in 2016. “We expect this year to be even better as the country entrench issue-based politics,” he said.
According to the Kenya National Bureau of Statistics (KNBS), the Q3’2021 GDP Report shows the Real Estate Sector grew marginally by 5.2 percent, 0.3 percent points higher than the 4.9 percent growth recorded in Q2’2021.
A more favorable business environment, Mburu said, enabled the country to boost investment in affordable housing to bridge the housing deficit by pushing more people into homeownership.
“Affordable housing is the only gateway to solving the housing deficit in the country and improving livelihoods,” said Mburu.
Center for Affordable Housing shows low-cost affordable houses currently account for a paltry 2 percent (1,000 units) whereas units targeted for high and middle-income earners take the lion’s share of 98 percent representing 49,000 units.