Why owning a home is becoming harder for Kenyans

Securing a decent home remains a significant financial goal for many Kenyans, but rising housing costs are forcing households to make tough decisions. For families already struggling with expenses like rent, school fees, food and transportation, the idea of saving enough money to buy a house seems increasingly unattainable. A recent survey by Habitat for Humanity International reveals that nearly nine out of ten Kenyan respondents have cut back on essential spending to cover housing costs, revealing the financial strain associated with finding housing.

The survey, conducted across 22 countries, also found that about 55 per cent of Kenyan respondents are worried that an unexpected financial emergency could jeopardize their ability to remain in their homes. While new residential developments continue to expand in major cities like Nairobi, questions persist about the affordability of housing for ordinary Kenyans.

Housing affordability involves more than just the mortgage payment; it encompasses other essential expenses like food, education, healthcare and transportation that must be met regardless of housing costs. When housing expenses consume a large portion of income, families may need to reduce spending in other areas to stay financially stable.

The survey shows that nearly 90 per cent of Kenyan respondents have had to make sacrifices in essential spending to meet housing obligations. Such financial pressure raises concerns about the sustainability of housing costs for families relying on limited income. Kenya faces a housing supply gap, with demand for homes outpacing the number of new units built annually.

However, simply having more houses built does not guarantee that Kenyan households can afford them. The price of a property must be weighed against the household’s income, access to financing and additional costs associated with ownership, such as deposits, legal fees, and mortgage payments. Developers like Willstone Homes are part of this expanding market, but the affordability of their completed properties must be assessed based on the financial circumstances of potential buyers, not just the number of available units.

Location also plays a crucial role in housing costs. A home farther from Nairobi’s main employment centers may have a lower purchase price but could result in higher transportation expenses for the occupants. Families with children may also face higher costs for schools, healthcare and other essential services in certain areas. Therefore, prospective buyers should consider the total cost of living in a particular location, not just the advertised purchase price.

Additionally, prospective homeowners face the challenge of ensuring the property they buy is legally secure, properly constructed and delivered as agreed. Verifying ownership documents, checking for registered restrictions or encumbrances, and confirming necessary approvals are essential steps before committing to a purchase. The legal status of the property and the terms of the purchase agreement must be carefully reviewed to avoid significant financial repercussions.