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Kenyan Govt's Housing Project To Implement Blockchain Technology

kenya oct16 lt

The government of Kenya plans to use blockchain technology in its new affordable housing project of 500,000 units, according to Kenyan news outlet The Star.

The distributed ledger technology will be used to deal with allocation and funds management of the housing project, to make sure proper distribution of cheaper housing to deserving participants. The government aims to build these units by 2022.

Housing and Urban Development Principal Secretary Charles Hinga, while talking with the World Bank in Nairobi, said, "Kenya will use blockchain technology to ensure the rightful owners live in government-funded housing projects."

With the move, the government aims to re-establish public trust in its housing initiatives that was marred by a scandal as officials were arrested for looting $78 million from the project.

National Housing Fund will finance the scheme under Finance Act 2018. Kenyan employees will contribute 1.5 percent of their salary that will be matched by their employers. Contributors earning less than 100,000 Kenyan Shillings or $992 will get the government assistance as they cannot afford mortgages.

The fund will raise 6 billion Shillings a month, resulting in 55 billion Shillings a year. The country is said to require 3.2 trillion Shillings to build a million houses.

Earlier in the year, there were reports that the finance ministry would set up a task force to explore the blockchain technology to improve transparency and efficiency in the public and private sector.

Central Bank governor Patrick Njoroge reportedly has acknowledged the use of blockchain technology for improving service delivery, despite ongoing warning against virtual currencies.

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