October 2018 | AtoZMarkets – Kenyan government plans to utilize Blockchain technology in its new housing projects according to a Kenyan local news outlet. The project was meant to provide 500,000 new and cheap housing units.
There is a move by the Government of Kenya to provide 500,000 housing units by 2022 to assist contributors earning less than 100,000 Kenyan Shillings ($992) who therefore cannot afford mortgages. According to the star, the government plans to deploy blockchain technology to efficiently distribute these houses to those deserving.
According to the star,
The agenda will be financed by National Housing Fund under Finance Act 2018 with a three per cent contribution by employers and employees, borrowing, issuance of asset-backed securities to investors and rental revenue from current available housing stock.
How Blockchain Technology Helps to Ensure Rightful Owners in Kenya
Blockchain technology, which can be used to ”store data separately using secure codes thereby making data modification impossible” was employed to address the issue of graft among legislatures and beneficiaries. The government hoped this will foster public trust in the housing project after 40 civil servants and 14 government officials were arrested for embezzling $78 million from the National Youth Service project.
The Principal Secretary of the nation’s Urban and Housing development, Charles Hinga said the project would require Sh 55 billion a year to make necessary supplies. He further said:
”Kenya will use blockchain technology to ensure rightful owners live in government funded housing projects”
“You should not pay more than 30 per cent of your disposable income to own or rent a home. For an average formal sector earning of close to Sh50,000 per month, one should pay at most Sh15,000 for rent”
Kenya Is Against Cryptocurrencies
Despite his warning against the use of Cryptocurrencies as an asset class or currencies, the Kenyan Central Bank Governor Patrick Njoroge has in recent times, spoken about the use of blockchain technology for a more efficient and transparent service delivery.
Earlier this year, the nation’s ICT secretary Joe Mucheru said the ministry would set up a task force to look into how blockchain technology can be harnessed to improve transparency and efficiency in the public and private sector.
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