NAIROBI, Jan. 16 -- More than 200 affordable housing units built by a Chinese firm in Nairobi were on Thursday handed over to the government to pave way for their allocation to the public at a subsidized cost.

Charles Hinga, principal secretary in the State Department of Housing and Urban Development said the 228 housing units will be available to buyers through a transparent process.

"The first batch of the flagship housing units demonstrates the government's commitment to deliver the affordable housing agenda," said Hinga, adding that the remaining housing units will be completed at the end of 2020.

Kenya plans to develop 500,000 housing units by 2022 to help meet growing demand in major cities and towns.

Government statistics indicate that the east African nation has an annual demand of 250,000 housing units but has only been developing 50,000 units due to financing bottlenecks.

Hinga said the implementation of affordable housing projects has gathered steam in Nairobi and adjacent satellite towns to help realize the dream of homeownership among low to middle-income earners.

He said the government has rolled out incentives that include speedy issuance of permits, removal of value-added tax (VAT) on construction materials and reduction of corporate taxes for private developers, to help achieve the affordable housing agenda.

He said that an electronic platform has been developed to facilitate transparent allocation of the 228 housing units located near downtown Nairobi to potential buyers.