The 17th edition of East Africa and Central Africa’s biggest homes show, Kenya Homes Expo, came to a close last Sunday with the organizers lauding the new government’s pledges for the housing sector, and pegging the hope of affordable housing for all Kenyans on turning paper to action at a time when only one in every ten Kenyans can afford decent housing. The real estate stakeholders meeting under one roof celebrated impressive strides that have been made in the sector, which are addressing the biting supply and demand deficits while enticing more investors in the sector as has been evidenced by rising number of developments.
“The new government’s manifesto points to the right direction, as quick and practical measures as promised could unlock the full potential of the property sector faster than has traditionally been thought,” said Mr. Daniel Ojijo, Founder and Organizer of Kenya Homes Expo speaking during the closing ceremony of the 17th Kenya Homes Expo at KICC.
“Currently, mortgages, the one form of financing which can assist a rising middle class own homes, have risen to unaffordable levels and the gaping deficit of annual supplies of 60,000 against 250,000 in demand for housing units is way below Vision 2030’s media term plan for increasing Kenya’s annual production of housing to over 200,000 units by 2012.”
Ojijo’s message is corroborated by a report by World Bank that shows only one in every 10 Kenyans living in urban areas can afford a mortgage in what is blamed on high and volatile interest rate regime, while rural incomes are too low to even consider. Kenya’s untapped mortgage market is estimated at Sh1.1 billion, and is the third-largest in Sub-Saharan Africa after South Africa and Namibia.
With a population of over 40million people, official reports indicates there are only 17,000 mortgage accounts up from 15,000 in 2010 representing a paltry 11 percent growth at a time when appetite for low cost home ownership has been on an upward trajectory. “Also, the government’s pledge to pursue a policy of lowering mortgage rates and borrowing from similar models in other countries will have a direct impact on the mortgage rates which will in turn make houses affordable to many,” OJijo added.
But its the promise of devolving the responsibility of housing to counties that could ultimately address the biting supply shortage as it would address the current problems brought about by centralized housing delivery model. “The monopoly of state institutions like the National Housing Corporation (NHC) and its continued focus on projects within Nairobi is likely to be overlooked when devolution takes shape,” said Ojijo.
And even as investor confidence in the sector rises bottle necks in acquiring land documents at Lands Office still remain the biggest block to doing business in the country. “The process of acquiring titles, leases or subleases currently running to years need to be simplified through digitizing the records and processes at the land offices,” Ojijo said.
The 17th Kenya Homes Expo brought together service providers and sellers drawn from a pool of sectors including the financial sector, insurers, energy suppliers, residential and commercial property developers, industry associations and government bodies, property valuers, constructors, development consultants, entertainment, interior decorators, travel, leisure and more.
“This year’s show was the biggest in history attracting over 40,000 visitors, 8,000 of whom came in on the closing day,” said Mrs. Maureen Ojijo, the lead Organizer at Kenya Homes Expo.
This year’s edition brought prospective customers current innovations in the market including the Sh1.5m Smart LCD TV showcased by Hot Point Appliances which was meant to encourage a rising middle class who according to Mrs Ojijo has an affinity for such innovations.
An independent judging panel from the Marketing Society of Kenya also sought to have the best exhibitors in client service and innovations awarded where Imara Gardens won in the real estate marketers category, CFC Life won the insurance category, as the finance award was taken by The mortgage Company, Crown Paints took the building and support category, Jenga Web the information technology category while Hotpoint Appliances, Urbanis Africa, Solar World, AssaAbloy, Tuskys supermarket, Space & Style were recognized in the household, developers, solar, security, furniture, and roofing solutions category respectively.
Best new entrant award went to Impala Glass while Hotpoint Appliances took the overall expo trophy as Crown Paints was voted most improved and the people’s choice award went to Hotpoint Appliances & King Developers Ltd.
“We have met clients who were ready to buy our products and though this was our second time to exhibit, Kenya Homes Expo has provided the best forum to meet face to face with prospective customers who are looking to buy displayed products. Though i am yet to finish supplying the contacts we met at the 16th Expo, we have got more contacts expecting our supplies in the coming weeks,” Ms. Nancy Gwaro, the Managing Director at Miale Furniture.
Kenya Homes Expo has for the last 8 years focused on helping the industry players and potential customers meet face to face under one roof thus generating thousands of sales leads and increasing by 10-folds the interest of exhibitors according to Mrs. Ojijo.
“We help in bridging the knowledge gap in the sector as studies show information gap is the biggest hold back for would be investors and customers who treat home ownership and construction as long term projects requiring extensive research,” she said.
Mrs. Ojijo said plans for the 18th Kenya Homes Expo, that is set for October 2013 were already in top gear. “Over 50 percent of the exhibitors have retained their stands and the 18th edition promises to be on a higher pedestal as more companies have expressed interest to sponsor,” she said. “The Ministry of Lands, Housing and Urban Development has endorsed the expo yet again and has pledged its support, together we endeavor to achieve the housing agenda as envisioned in the social pillar of Vision 2030.
Kenya Homes Expo was founded in 2005 and has since risen to be the largest housing forum in the whole of East and Central Africa where the stakeholders meet face to face in one platform twice a year.
Mr. Ojijo says the expo has proved the private sector can help not only bridge the yawning deficit between supply and demand of housing units but also help supply houses to millions of Kenyan at the low income levels when given an enabling environment.
“Nairobi alone has over 2million people who are in dire need of decent and affordable housing where as reports indicate only 6,000 units are produced in the county annually and therefore this requires government incentives to developers to meet the high demand for houses in the low income cadre,” said Mr. Ojijo.
