4.9 Major housing
developers in Kigali city
Apart from self provision of housing units by individuals in
Kigali city (and they are the majority), there are both public and private
institutions (firms) that play a significant role in real estate
development.Rwanda social security board (RSSB) is the major public institution
that has concentrated efforts and finance in real estate development especially
in residential housing development. One of the Rwanda social security board's
developments is Gacuriro estate in Kinyinya sector of Gasabo district. Gacuriro
estate is a well developed residential site with basic infrastructures such as
paved roads and streets, electricity and water connections (photo 7). There are
302 houses that were built in 2003 on Gacuriro estate site. It is said that
these houses were built to facilitate low-income people to own a shelter.
However, the standard and cost of houses built by RSSB in Gacuriro seem to be
high compared to income of the majority of Kigali residents. Rwanda Social
Security Boardsold each house at a cost of 23 million Rwandan francs with 5
million paid in advance. The rest of the money could be paid in installments.
Houses that were not bought are being rate rented at a price of 1200$ per
month.
Photograph 7: Gacuriro houses
built by RSSB
Source: Author, 2011
Rwanda Social Security Board is undertaking another housing
project scheme of 2600 in the same area. Private land owners were compensated
according to the expropriation law of Rwanda.
Kigali city council (KCC) has also contributed to the housing
of its low-income citizens especially those displaced (relocated) by
expropriation in public interest. To provide affordable housing to low-income
groups, KCC developed `a model house' constructed using sustainable
low-cost materials (photo8). In the first phase, 250 low-cost model houses were
constructed in Batsinda, Kinyinya sector in Gasabo district. The site is
provided with a school health center, roads, electricity and water. KCC
resettled residents that were expropriated in Ubumwe cell, Muhima sector in
Nyarugenge district. The cost of each house was 10,000$. The cost was somehow
affordable to poor families since they were assisted to pay, through
collaboration of Kigali city with Rwanda Housing Bank (RHB) which provided
loans. Even though somehow affordable in terms of cost, some occupants claim
that a two-bedroom house is too small for large families. KCC is planning to
build more houses in the following phases.
Photograph 8: Batsinda model
house
Source: Kigali city website
(www.kigalicity.rw)
Rwanda Housing Bank (RHB) is a public financial institution
that was established by the government to finance housing development in
Rwanda. The institution basically provides loans to individuals who want to
build their houses. The Rwanda Housing Bank normally gives loans to individuals
that want to purchase, complete or upgrade their homes. Also the bank provides
loans to property developers wishing to construct houses for sale. The
developers should have a 40% of the project cost; while the bank gives a loan
of 60% (the bank offers loans to qualifying buyers as well). However the bank
also developed 52 houses in Gacuriro that were sold to individuals.
Some public institutions, like the national bank of Rwanda,
have built houses for their employees to facilitate them to own a shelter. This
has contributed to housing ownership by most public servants.
In addition to housing development by public institutions,
there are private estate developers that build houses and sell or rent them to
individuals. Kigali top mountain company is one of them and has constructed 58
houses in Gacuriro cell. The Kigali top mountain company is opting to widen its
housing supply in Kigali city. Another private company that constructs houses
for sale is real constructors, the proprietor of Kabuga hillside estate. The
new Kabuga hillside estate located in Rusororo (Gasabo district) enjoys a range
of residential pleasures. Kabuga hillside estate is located 7 kilometers from
Kigali international airport. It has 79 units each with 4 bedrooms on spacious
25x25m plots.
A general observation is that most houses built by either
public or private firms (or institutions) are expensive and cannot be bought by
most low-income earners in Kigali city.
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