Happy Christmas. Today we celebrate the birth of Jesus who, “though he was rich, yet for your sakes he became poor, so that you through his poverty might become rich.” 2 Corinthians 8:9. The continuing exploitation of the poor by the rich indicates that the Christmas promise of “Peace on Earth” is still a long way from ultimate fulfilment. The latest example relates to ownership of slum buildings in Nairobi.
A UN-Habitat report indicates that one of the most profitable investments in Nairobi is a slum house. The people who live in slum dwellings might be amongst the poorest on the planet, but that does not stop their landlords charging lucrative rentals. According to the report, 92% of the residents of the Kibera slum have to pay rental. Ironically, almost all of the slum houses are illegally constructed, but official interest in addressing this problem is low because most of the illegally constructed houses are owned by public servants and members of parliament.
The cost of building a typical one-room corrugated iron shack is around 13,000 shillings (US$175), and the rental return is around 1,300 shillings per month, so the entire capital outlay can be recovered in 10 months. The houses have inadequate ventilation and no sanitation arrangements, and landlords have no incentives (financial or regulatory) to make improvements to the structures.