Affordable housing: Socio-economic model explained

The socio-economic housing model that experts are vouching for as the best way to achieve the presidential vision on affordable housing is entirely dependant on members, whose contributions are key and vital in initiating the envisieged project.

There are different payment plans available to members and which plan they choose based on their ability to pay. The shortest of such duration is a year, while the longest is a four year payment plan.

“These vary from one member to the other depending on their economic ability and we assess agree on the suitable one,” explains Urithi Housing chairman Charles Maina.

Urithi is the only well established housing society in Kenya to fully premise their model on the socio-economic approach.

Project timelines can only be achieved depending on the speed of members making their contributions, meaning slow remittance or defaulting by some members leads to delays.

“Speed is determined by how fast you get money from members. But due to the uncertainty and unpredictable nature of contributions and cash flows we have to adjust accordingly,” explains Maina.

The pricing does not change over time because the model mitigates on cost of labor, land and materials so it is affordable as the initial Price remains the same regardless of economic factors, mainly inflation.

“Being an off plan, it entails some steps and procedures that are to be followed to the letter. Marketing sounding is done as away of notifying on the intention and nature of project to be undertaken,” elaborates Maina.

“Mobilization follows, which entails recruiting members and other stakeholders. Approval Seeking, necessary approvals have to issued with relevant Authorities, to enable clearance.

“Once a clean bill of health is given, project Groundbreaking marks the beginning of real construction works.”

Urithi housing cooperative society has in the last three years handed over five construction projects, namely Springviews – Thika, Plainview – Juja, Gen1 – Mwithiethe, Lanet Homes – Nakuru and Juja.

Another three projects are set for completion before being handed over in the next three months. They are Utange – Mombasa, Gen2 and Rongai Homes.


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