UDA senator reveals that affordable housing is a scam

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Even though Kenyans are contributing 1.5% of their earnings to the Housing Fund, Marsabit Senator Chute Mohamed has cast doubt on the program’s intentions.

On Thursday, Chute, who also serves as a member of the Parliamentary Committee on Roads and Housing, spoke on the Assembly floor.

According to him, it is incomprehensible that the government is providing land for the project at no cost, but Kenyans must pay a high price for the finished good.

The senator was discussing a petition that Mombasa residents had submitted expressing their concerns regarding a project involving affordable housing.

Chule stated that although the government provided land for the construction of the affordable housing project in Mombasa, it was sold at a premium price when compared to its market value after it was completed.

When the project finally materialized, the 13 acres of land were the subject of only one tender.

The senator claims that although the finished affordable housing project in Mombasa is being sold for Sh90,000 per square, its true market value is closer to Sh70,000.

“Speaker, there is a scam going on with affordable housing. “If you look at the government giving land for free, you’ll see that the same government is also giving value-added taxes free, tax-free building materials, and free land transfers,” the speaker stated.

“I have no idea what calculations they are using. You provide someone with free public property owned by the government, and then that person develops properties at a commercial price that is beyond of reach for that person?” the senator said

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