Home Ownership through Self-Build
According to a recent survey by Kenya Bankers Association, those who could afford a mortgage are only 2.4% of the total population and 11% of the urban population. This is the case with an average mortgage loan size of Ksh.4.0million.
What does the law day about self-build?
The National Construction Authority Act 2011 provides in Section 16:
“a person shall not be deemed to be a contractor if the work undertaken— (i) does not incur a cost exceeding such sum or sums as the Board may from time to time determine; or (ii) consists of a residential house for private use, not requiring a structural design.”
The results of the survey indicate that home ownership is mainly through building (68%) compared to buying and inheriting which contribute 17% and 15% respectively.
Key reasons for home ownership according to Centre for Research on Financial Markets & Policy, KBA
- Value as a lifestyle investment.
- Reduce the burden of rent.
- It has value as a way to build up wealth for retirement.
- To gain tax benefits/relief.
- Providing a good and secure place for the family.
- As an inheritance, it can be passed on to family.
- Need for a permanent residence.
- Owning a house improves ones social status.
- Secluded place/privacy.
- Gain place that is in a community and location you prefer.
- Privacy and seclusion.
- To accommodate personal taste and specifications.
- Ability to make updates and renovations if one wishes.
Is it possible to undertake self-build?
Yes it is possible. However, it is prudent to obtain guided service in the form of an Architect, Engineer, Quantity Surveyor and other such professional as one may need.
For supervision of the project, one can use an accredited supervisor registered by the National Construction Authority. They are construction persons duly registered to supervise such small building projects wise value does not exceed Ksh. 5,000,000.00
Ensure that the project is first registered with the Authority before commencement of the construction.
