Govt. Of Kenya To Implement Smart Contract Blockchain In Its Housing Project

The government of Kenya is planning to implement a smart contract blockchain solution in its housing project. The government intends to deal with the funds and allocation management issues concerning affordable 500,000 housing units with the help of blockchain.

As per reports, National Housing Fund under Finance Act 2018 will finance the agenda. 3 percent contribution will come from employees, employers, issuance of asset-backed securities to the investors, borrowing and rental revenue from the existing housing stock.

According to Charles Hinga known as the Housing and urban development Principal Secretary, the fund will help to raise Sh6billion every month which will further lead to Sh55 billion fund per year, thereby, helping to unlock the projects’ supply chain. While talking about the affordable housing agenda during the second urban dialogue with the World Bank in Nairobi Hinga stated, “Kenya will use blockchain technology to ensure the rightful owners live in government-funded housing projects.”

James Macharia, the CS, Transport, and Housing stated that Kenya needs Sh3.2 trillion to build the required million houses. Hinga discussed the ratio of mortgage to rent in his country which is 6:1. He stated that providing affordable housing and properties is a big challenge in Kenya.

To find a solution for such challenges the country is planning to use smart contract blockchain which is also used to power transactions on the virtual currency exchange. Blockchain technology stores the records separated and keeps it secure with a code thereby eliminating any chances of data modification from the third person, the Star reported.

The Kenyan government is coming up with a plan to build houses costing between Sh300,000 and Sh3 million in different areas. However, a dilemma still persists with the government which has always been the major issue concerning who will be the beneficiaries. It is because Kenyans do not trust their government anymore especially when it comes to housing projects especially after the previous National Youth Service scandals I and II, Cointelegraphreported.

The Kenyan government is hopeful that implementation of smart contract blockchain can reduce the possibilities of such scandals in which 14 private sector officials and 40 civil servants were found guilty of looting $78 million from the coffers of the project.

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