Presenter: Arch. Emma Miloyo President (Architectural Association of Kenya)

Transcription

1 Presenter: Arch. Emma Miloyo President (Architectural Association of Kenya)

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5 Q2: Unlocking government s land bank to serve local and foreign investors - how will this roll out? There is no one single definition of Land Banking. In Kenya, Land Banking is understood to mean the accumulation of serviced public land for critical future needs, for example industrial investments, housing projects and other basic public needs. Examples of government projects established on land banks from the past include:- 1. Jamhuri Park in Nairobi 2. EPZ in Athi River Unfortunately, policy planning in Kenya for the last 50 years has not focused on providing land for housing and other basic needs.

6 What is the Government of Kenya doing towards the actualization of a Land Bank for Housing? Obtaining excess land holdings from government corporations The Ministry of Lands and Physical Planning and the National Lands Commission have forwarded a proposal asking government-owned entities to release the excess parcels to the Government s land bank. Entities include: Portland Cement Company, Kenya Broadcasting Corporation, Numerical Machining Complex, International Livestock Research Institute, Kenya Prisons, public universities as well as Ministry of Agriculture and Livestock Despite the Government s effort, successful land banking is

7 guaranteed. Which key features will ensure Government s endeavor towards land banking is successful? 1) The objective of the Land Bank should be narrow and focused and the aims of it should be specific 2) The coordination of all stakeholders should be seamless 3) Ascertaining which sphere of government manages the process is extremely crucial 4) An integrated management information system with detailed property information is essential 5) The aims of land banking should be incorporated into the strategic planning of Counties and not just the National Government

8 Q3: PPP s: How to enable better access for private sector investment and development Public-Private-Partnerships (PPPs) enable the public sector to:- - leverage more financial resources by using the private sector as an intermediary to great extent. - consider the implementation of otherwise unaffordable infrastructure projects to a great extent. A total of Sh2.6 trillion will be spent to build the one million housing units across the country 800,000 units will be built under the Public-Private Partnership (PPP) model while the remaining 200,000 units will be built under a social housing scheme

9 The government has enlisted 35 local and international companies to undertake a pilot low-cost housing project in Mavoko, Machakos County. A total of 8,000 low-cost two and three-bedroom housing units will be built on a 55-acre parcel of land Guided by the Engineering and Procuring Contract (EPC), a developer will be incharge of the project from design to procurement, construction, commissioning and handing the houses over to beneficiaries. The government will provide the land, build roads, and provide power and water. Government s pledge to enable better access for private sector investment and development:- offer Sh40 billion worth of monetary and legislative incentives to the private sector to attract partnerships

10 3. The government could help the local investors source for lowinterest financing from social development financial institutions offer investors 7,000 acres of serviced land through the Finance Act 2016, has lowered the tax rate by half for developers who build at least 400 low cost houses annually What more can be done by the Government to enable better access for private sector investment and development? 1. Fast-track approvals for housing construction permits and reduction in fees associated with housing construction 2. Develop a PPP framework not just for housing but also for urban land and infrastructure that will set clear rules for the sharing of cost and profits between public and private entities

11 A World Bank Report (Benchmarking Public Private Partnerships Procurement 2017 ) assessed the capacity of 82 countries, including Kenya, to prepare, procure and manage PPPs based on the prevailing policy, legal and regulatory framework and evaluated this data against generally accepted good practice. Of the 20 Sub-Saharan African (SSA) countries reviewed, Kenya was among the top 10, with Tanzania scoring the highest. The report identified a few areas that require greater clarity and/or review, including: 1. Sole bidder scenario 2. Unsolicited PPP proposals

12 CONCLUSION There are numerous examples of misplaced government housing developments, failed government housing land banks and ineffective housing subsidy mechanisms. Too often good intentions from government become subverted by poor execution. Housing development is notorious for lack of transparency, and as such needs to be done in a careful way.