According to a major news outlet in Kenya, the Star, Kenyan government is planning to deploy blockchain tech to distribute affordable homes. Blockchain technology will help the government to deal with allocation and management of funds.
The government is planning to build 500,000 housing units by 2022. The project plans to assist contributors earning less than 100,000 Kenyan Shillings($992) as the mortgage to rent ratio is very high. According to the Star, only 3.1% of employees earned over Sh100,000.
The Star reported that the blockchain technology would be adopted to address issues of both legislators and beneficiaries. This is supposed to ensure proper distribution of housing to deserving parties.
Previously, almost $78 million has been looted in National Youth Service scandal by a group of civil servants and private sector officials. Thus, the Kenyan government hopes to reestablish public trust in government’s housing initiatives post the arrest of members of scandal by presenting a fair and transparent process.
During the second urban dialogue on affordable housing agenda with World Bank in Nairobi, principal secretary, Charles Hinga said:
“Kenya will use blockchain technology to ensure the rightful owners live in government funded housing projects,” Hinga said during the second urban dialogue on affordable housing agenda with the World Bank in Nairobi yesterday.
Blockchain in Governance
Blockchain technology including cryptocurrency transactions, allows storing of records separately. These records are linked to a secure code making it impossible to modify data.
Hinga said that the ratio of mortgage to rent in Kenya is as high as 6:1 making affordability a challenge. Despite adopting technologically advanced system, Kenya fears of beneficiaries and even legislators. Hinga admitted that Kenyans have lost trust post National Youth Service scandals I an II.
In case of successful implementation of this project, Kenyan government will win its trust back. Moreover, this project will serve as an example of how deployment of blockchain will effectively solve problems in governance.