Developer calls for a review on building materials prices to realise BIG 4 dream.

Mahiga Homes Group of Companies Director Joseph Ruhiu addressing investors in Kimunyu village Gatundu South during the handing over of 12 self-contained houses to their owners. Looking on is Madam Gladys Chania who was the chief guest (left) and the group's Managing Director Patrick Muchoki (right).  
A real estate developer has urged the government to review the cost of building materials downwards if at all they want to succeed in the implementation of President Uhuru Kenyatta' BIG 4 Agenda.

Speaking in Kimunyu village Gatundu South during the handing over of 12 self-contained houses to their owners, Mahiga Homes Group of Companies Managing Director Patrick Muchoki lamented that the high cost of building materials was hindering the growth of real estate industry thus jeopardising the government's goal of affordable housing which was one of the key pillars of the BIG 4 Agenda.

Muchoki noted that the price of steel has risen by 30% between January and August this year while the cost of Timber has also risen by 100% and that of iron sheets by 100% since the ban on logging was implemented and fuel has gone up by more 20 %.

“All this put together is affecting the cost of construction by 23% making it a little bit difficult for us to be able to offer more offer more affordable options when it comes to housing. We would therefore request the government to involve players in the industry in the development of policies that affect the industry” he said.

He added that the government decision to increase the prices of fuel had a ripple effect on the building and construction industry as it will increase transportation costs of building materials.

His sentiments were echoed by Madam Gladys Chania who said that it was alsmost impossible for the government to realise its dream on affordable housing if policy makers didn’t stop coming up with punitive policies.

She advocated for tax incentives being extended to real estate developers including access to cheap loans to enable them supplement government efforts on affordable houses to Kenyans.

Mahiga Director Joseph Ruhiu said the company  has constructed over 200 housing units in Kiambu County this year.

The first phase of Kimunyu houses started in February this year and have taken a record six months to complete.

"The second phase consisting of 28 units is expected to be complete by the end of this year," he said.


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