Kenya To Distribute New Affordable Housing Using Blockchain Technology
The Kenyan government plans to use blockchain technology to deal with allocation and funds management of the cheaper 500,000 housing units.
This project is being financed by National Housing Fund under Finance Act 2018 with a three per cent contribution by employers and employees, borrowing, issuance of asset-backed securities to investors and rental revenue from current available housing stock.
The hoses are reportadly aimed to be built by 2022, and assist contributors earning less than 100,000 Kenyan Shillings ($992) as they cannot afford mortgages. Out of the 2.48 million Kenyans employed in 2016 only 77,000, or 3.1%, earned over Sh100,000.
Housing and urban development PS Charles Hinga said the fund will raise Sh6 billion a month translating to Sh55 billion a year to unlock the supply side of projects.
“Kenya will use blockchain technology to ensure the rightful owners live in government funded housing projects,”
Hinga said during the second urban dialogue on affordable housing agenda with the World Bank in Nairobi.
Hinga said the ratio of mortgage to rent in Kenya is 6:1 with affordability of the properties a challenge. But even as the government is set to build houses that will cost between Sh300,000 and Sh3 million in various identified lands, the dilemma has always been on graft fears arising from beneficiaries and even legislators.
The Kenyan government has been pretty forward-leaning when it comes to the adaptability of Blockchain tech. Recently, Kenyan Distributed Ledgers and Artificial Intelligence task force chairman Bitange Ndemo said that the government should consider tokenizing the economy to deal with “increasing” rates of corruption and uncertainties. This move, according to Ndemo, would have the government print less hard currency.
Notably, early this year, ICT CS Joe Mucheru said the ministry would set up a task force to explore how the blockchain technology can be harnessed to improve transparency and efficiency in the public and private sector.