Why affordable housing project is a scam – UDA Senator
Senator Chute Mohamed of Marsabit has cast doubt on the Affordable Housing Program’s purpose, even though Kenyans contribute 1.5% of their income to the Housing Fund.
Thursday, Chute, who is also a member of the Parliamentary Committee on Roads and Housing, delivered a speech on the Assembly floor.
He stated that it is illogical for the government to provide land for the project without charge while charging Kenyans a premium for the final product.
“Speaker, this issue of Affordable Housing is a scam. If you look at the government giving land for free, the same government is giving tax-free building materials, same government is giving value added taxes free, and also transferring that land free of charge,” he said.
“I don’t know what kind of calculation they are making. You give free government land, which is public land to an individual and then that individual builds properties at an unaffordable price, commercial price?”
The Senator was referring to a petition that Mombasa residents had submitted in which they expressed their apprehensions regarding an affordable housing development.
According to Chule, the completed affordable housing project in Mombasa was sold at a premium over its market value, even though the government had provided the land for its development.
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“If the President can hear me, he should stop all developments purported as being Affordable Housing. There is nothing like Affordable. These are crooks, thieves, and a calculated move to steal from this country,” he said.
“Why am I saying this deal is crooked? Because why should the land owners who are Kenyans be given 10 percent while the developer gets 90 percent?” he posed.
When the time arrived for the project, a single bid was received for the 13-acre parcel of land.
As per the Senator’s assertion, the fully developed affordable housing development in Mombasa was being advertised for Sh90,000 per square, despite its current market value being no more than Sh70,000.
“My friend bought 104 square meters property in Great Wall. He bought two maisonettes at the cost of Sh3.5 million. And if you divide 3.5 million by 104, you are getting that land at Sh 34, 000 per square metre. So why should somebody tell me that after giving this land for free, its price will go to Sh90,000 per square meter?
“In that committee, my view was that the government has lost land to fraudsters in the name of developers. I will tell you today, after 10 years there will be no land that will be left for Kenyans to use because all the land that is supposed to be developed by the government will have been taken over by fraudsters pretending to be developers,” he said.Â
Why affordable housing project is a scam – UDA Senator
