The government in Kenya is hoping to harness the power of blockchain as it rolls out its plan to develop one million state-funded houses in the country.
Having adequate housing should be a fundamental right of any human being. However, this is not the case when it comes to some in developing countries. The poverty-stricken, unfortunately, have to worry about putting food on the table and seeing that they have decent clothes to wear. However, The Star recently reported that the African country of Kenya is turning towards blockchain technology for a solution to this.
A Record of Ownership
While affordability is, of course, a major issue when it comes to citizens owning their homes, Charles Hinga says that ownership of state-built houses is a problem. Hinga, who is the government’s Principal Secretary for Housing and Urban Development explained how the disruptive technology can help, saying that “Kenya will use blockchain technology to ensure the rightful owners live in government-funded housing projects.”
This is because every piece of data recorded on the blockchain cannot be changed, edited or removed. Because of this, it has been embraced by a range of industries from art to health care. Kenya has previously discussed how it can be integrated into their election voting processes, showing just how versatile blockchain can be.
Just as Kenyan residents are skeptical of the legality of voting structures, so too are they doubtful of the government’s ability to allocate houses. This is a problem that blockchain’s inherent transparency could solve.
The government also has some ambitious plans for solving the affordability issue. Kenya’s Cabinet Secretary for Transport and Housing, James Macharia, highlighted what should be happening:
You should not pay more than 30% of your disposable income to own or rent a home. For an average formal sector earning of close to Sh50,000 per month [approximately $500], one should pay at most Sh15,000 [approximately $150] for rent.
Kenya Keen on Blockchain
Macharia added that the country requires Sh3.2 trillion, which is over $30 billion, to build one million houses. Potential homeowners can expect to pay between Sh300,000 (approximately $3,000) and Sh3 million (nearly $30,000).
In addition to voting and housing, the Kenyan government is looking at exploring the many benefits that this technology can offer in both the private and public sector. Even the Central Bank of Kenya is on board.
This blockchain interest and adoption comes at a time when authorities around the world are racing to create and implement crypto regulations. Kenya has previously voiced their plan to develop a cryptocurrency monitoring agency to gauge adoption in the country.
Do you think that blockchain can make a difference in Kenya’s plans to develop affordable housing? Let us know in the comments below!
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