Service charge: The hidden cost making housing expensive
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Loading... - Lucy Musembi
- 13 Feb 2023
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The lack of a clear model dictating how service charges are levied is a factor deterring the affordability of housing in Kenya, a case study shows.
The ability of the developer or landlord in question to have a free hand on how they apply this charge has also been put into question.
The findings of this project, published last month by the Centre for Affordable Housing Africa (CAHF) and funded by Financial Sector Deepening Kenya (FSD Kenya) points out the opaque nature in which this service is calculated and charged.
As such, many potential homeowners or tenants, do not necessarily factor this cost in mind when seeking a residential place and worry only about the payable monthly mortgage or rent.
This hidden yet open charge, the survey notes, then becomes a significant factor when affordability is discussed.
Just at the beginning of data collection, it is indicated that 14 residential projects were earmarked for a survey around the Nairobi Metropolitan area, which includes interviews.
However, the findings under the title Understanding Service Charges in Kenya’s Housing Market, indicate only four residential projects agreed to provide adequate information.
“This draws attention to the difficulty in accessing publicly available and credible data on housing which would otherwise support investment decision-making for stakeholders in the sector including potential homeowners, developers, and property managers,” reads the findings of the survey.
Data for the survey was collected between February and June 2022. Read More…
