Kenya Adopting Blockchain For Affordable Housing Projectbr>
The government of Kenya is planning to use blockchain technology in its new affordable housing program to ensure that units go to the rightful recipients.
Local publication Star reported that the program aims to build 500,000 units by 2022, and will be financed by the National Housing Fund under Finance Act 2018. The fund intends to raise Sh6 billion ($59M USD) a month, translating to Sh55 billion ($545M USD) a year, to unlock the supply side of the projects.
Charles Hinga, Principal Secretary of CS Transport and Housing, said that the program will use blockchain technology to ensure the proper distribution of housing to deserving participants and address issues of graft from both legislators and beneficiaries.
“The ratio of mortgage to rent in Kenya is 6:1 with affordability of the properties a challenge,” Hinga said. “But even as the government is set to build houses that will cost between Sh300,000 ($2,973 USD) and Sh3 million ($55,591 USD) in various identified lands, the dilemma has always been on graft fears arising from beneficiaries and even legislators.”
Hinga acknowledged that Kenyans have lost trust in the government housing projects following the National Youth Service (NYS) scandal. The scandal saw funds allegedly stolen via NYS through fake invoices and multiple payments. The scheme involves a senior government officials and ghost suppliers. Hinga said he believes blockchain will help re-establish public trust in government projects.