As Housing demand that far outstrips supply is one of the main challenges the country and, the City of Kigali, in particular, is grappling with presently. Low income earners are the most affected, according to a survey done three years ago by the city authority, with developers focusing on the upper market segment clientele who have a lot of cash. This has left the low and middle-income city dwellers and other Rwandans no option but to stay in houses not deemed fit for habitation.

According to the State of Housing Report 2012, 800-1000 housing units are delivered onto the market for city dwellers per year. The City of Kigali alone needs 25,000 units a year.

However, increasing interest in affordable housing by investors could soon change this situation. Already, a number of firms, including JS International Inc, an American construction firm that specialises in prefabricated housing, have started affordable housing projects in different parts of the city.

JS International (JSI) is currently developing Karumeyi Village Estate in Rubirizi, Kanombe, a Kigali suburb.

The firm is setting up two bed roomed pre-fabricated single storey houses on a 60 square metre. Each house takes about eight days to complete, according to Alfred Karumeyi, the manager for Karumeyi Village Estate.

"These houses target low-income earners. We also develop 3-bed roomed units that cost $30,000 (about Rwf.22.7 million),” says Karumeyi. However, the pre-fabricated duplexes are high-end at Rwf52 million a unit as they take more land, time (about eight weeks) and materials. The project for pre-fabricated duplexes is expected to kick off next year.

David French, the JSI managing director, says the firm can set up 10 to 15 units in a week and 700 houses per annum.

"That’s not going to fix the housing shortage challenge overnight, but it’s a good step forward,” says French.

Affordable houses have a ready market with buyers committing funds before the project starts.

The City of Kigali master plan requires developers to construct apartments.

Challenges

The Karumeyi Estate lacks electricity and water as the utilities are yet to extend services to the estate. The proprietor says this has affected the project as some home buyers are reluctant to commit to an area without electricity and water supply.

He says, however, that the authorities have promised to connect the estate to power grid and piped water next month. Karumeyi Village sits on a 89-hectare piece of land.

Other affordable housing projects announced by Kigali City this year are Batsinda II (609) units, Ziniya pilot project (128 units) Ndera affordable housing project (2,000 units) Rugarama (2,743 units) and Kanombe affordable housing project (2,000) units.

Other developers involved in low-cost housing include the Rwanda Housing Authority, Kigali Veterans Co-operative Society, City of Kigali, among others.

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