LANDS CABINET SECRETARY Hon. NGILU SHOULD COPY AND PASTE ALL SOUTH AFRICAN LAND LAWS TO KENYA TO REDUCE HOUSING COSTS by over 100%.
In South Africa, beach front property a few km from Cape town CBD and walking distance from the beach goes for approximately kes 8m for a 3 bedroomed maisonette.
This is an area many Kenyans can only dream of in terms of road infrastructure, security ,availability of social amenities e.g. shopping malls, schools, hospitals etc.
In Kenya, a comparative property for kes 8m will be in Kitengela around Yukos area a few meters off the main road.
In Kitengela, the security, schools, hospitals, services etc cant be compared to the ones available in the Cape town neighbourhood.
See Kitengela Yukos neighbourhood area pictures here.
This is an over 100% value compared to South African value. This means Kenyans in general for the upper middle class housing, pay over 100% more for the same quality of house compared to South Africans.
South Africa law requires all land transactions to be done involving the National Land Bank. This ensures that any Capital gains accrued form the sale of property is taxed. This has reduced the need to speculate on land since the rate of land price appreciation is very low compared to Kenya with a between 20 to 30% annual land value appreciation.
Land price is the determinant to this property value appreciation. Actual construction cost between Kenya and South Africa does not differ much though construction cost in Kenya is higher.
The availability of low cost land in South Africa has led to a vibrant construction industry hence savings in economies of scale unlike in Kenya.
The Lands Cabinet secretary will go a long way if she studies the South African land laws and implements them here.
Francis Gichuhi Kamau, Architect.