Kenya studying Korean tech for housing

Kenya is studying South Korea's advanced technology to improve housing infrastructure and address the African country's housing challenges.

“Our goal is to build 200,000 housing units annually, and we’ve already started over 100,000 units since July 2023,” Charles Hinga, principal secretary of Kenya's State Department for Housing and Urban Development, said in an interview with The Korea Herald on Saturday.

Kenya plans to use Korean technology, such as aluminum formwork, to support these projects. Kenya’s housing program is funded through various sources, including a 2023 housing levy, collecting $60 million monthly.

"Our target is to get close to about $75 million a month,” he said.

“We have the money; we pay them,” he highlighted, encouraging builders from Korea to come to Kenya to help construct affordable houses or design housing technologies.

He said that a major Korean construction company is already operating in Kenya and noted that Kenyan developers are purchasing high-quality aluminum formwork from Korea, emphasizing the demand for quality construction materials in the country's housing sector.

The secretary was in Korea to attend the World Smart City Expo held from Sept. 3 to Sept. 5.

He discussed a study on smart cities and his interactions with South Korean counterparts, finding their advanced smart systems impressive.

Hinga admired South Korea's ability to provide decent housing for a large population on a smaller landmass and reflected on Kenya's reduced public housing investment since the late 1980s due to structural adjustments by the World Bank and IMF, which adversely affected the population.

Hinga envisions a housing project with standardized designs such as Block A for social and affordable housing, Block B for affordable and market-rate units, and a mixed-use development (MUD) with shops and facilities for up to 10,000 residents, plus essential social infrastructure like schools and hospitals.

"It takes time, but ultimately we want them (construction companies) to set up production in Kenya,” he underlined.

“We have the funds and are looking for Korean builders to help design affordable housing,” Hinga said, urging Korean companies to exploit Kenya's growing demand for construction technologies such as lifts.

“We aim to create jobs for our young population, with over 65 percent under the age of 35. Housing development plays a key role in this,” Hinga said, suggesting that Korean companies can benefit from Kenya’s skilled labor, special economic zones, and strong infrastructure.

But Hinga also discussed Nairobi's housing crisis, where high land costs and low wages, coupled with inadequate public transport, push people into informal settlements and slums.

To reduce construction costs, which constitute 45 percent of development expenses, he said that his government introduced VAT exemptions on input materials and a housing levy in 2023, with a 1.5 percent contribution from both employers and employees.

He added that Kenya’s had over 800 government-owned land parcels available across all 47 counties.

Offering incentives like tax holidays and cheap power, the principal secretary invited Korean companies to be part of Kenya’s long-term goal to build 1 million houses over five years.