City of Kigali seeks solutions to housing shortage

A three-day symposium bringing together investors, experts, development partners, public and financial institutions and NGOs with the City of Kigali (CoK) is discussing solutions to counter shortage of affordable housing in the city. The meeting is being held under the theme, “Housing for all, essential driver of sustainable urban development in Rwanda.” Participants are discussing how to increase investment in affordable housing for both low and middle income households. Launching the ‘Urban Month’ the ‘Kigali Investment Forum,’ as well as the housing symposium, the Mayor of the City of Kigali, Fidele Ndayisaba, said: “The issues of land scarcity can be addressed by building vertically. We also look at housing finance as the key in guaranteeing access to quality, affordable housing through rental housing scheme.” The mayor cited a 2012 Housing Demand Study carried out by the City which indicated that out of 223,000 housing units examined in 2011, only half were in good condition. At least 71,000 housing units could be be upgraded, while the remaining 108,000 were of such low quality that they needed to be replaced. Ndayisaba said Kigali will need at least 458,265 housing units by 2022. Building 344,000 new housing units while ensuring that the 114,197 existing ones remain in livable condition will meet this demand, he explained. According to statistics, 43,436 housing units for Kigali residents who earned less than Rwf35,000 per month would have to be built. These units would be financed through a government subsidy. Some 186,163 units will be built for households earning between Rwf35,000 and Rwf200,000 per month. Another 112,867 dwelling units for those earning between Rwf200,000 and Rwf250,000 per month will be built – this segment of the housing market is eligible for mortgage financing. Demand for premium housing in Kigali is 1,601 units. Challenges and solutions Ndayisaba said the trend has led to efforts to manage urban planning with the master plan and zoning regulations, land registration, the encouragement of mortgage market and direct investment in affordable housing, as in the case of the Batsinda project funded through Rwanda Social Security Board and the Rwanda Housing Authority. He said the recently approved National Housing Policy provides a platform for fixing the criteria for future housing construction. However, City architect Abias Philippe Muhire said the lack of financing for housing, large-scale projects and land for developmeny remains a constraint Experts say there is a need for a clear regulatory framework in which government defines its support and facilitates private investors in constructing low cost housing. Femi Adole, the director of business development at Shelter Africa, a Pan-African institution that finances affordable housing, said for affordable housing to become a reality, a social housing programme that includes a subsidy structure, regulatory framework, amended land laws and tax exemptions would have to be drawn up. While currently only 18 per cent of Rwandans live in cities, this number is expected to increase to 35 per cent by 2020. editorial@newtimes.co.rw

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City of Kigali seeks solutions to housing shortage