The International Finance Corporation (IFC), World Bank’s private funding arm has partnered with Kenya’s real estate firm Belco Realty to develop affordable housing units in Kongowea, Mombasa County.
IFC’s partnership with Belco is part of a wider strategy to support access to affordable housing in the country. Last year, the entity sunk Sh 215.6 million in Equity in the Kenya Mortgage Refinancing Company (KMRC).
The development to be known as the Kongowea Village sits on an eight-acre parcel of land and is tipped to foster inclusive and affordable community living. The partnership deal will see construction of 1379 residential units and 4500 square meters of commercial and retail space.
Standards of sustainability
During the three- year construction period, the project is expected to create 1,160 jobs. the IFC will seek strategic partners to invest Sh.1.3 billion in Belco and provide technical assistance.
“Affordable Housing offers a unique investment opportunity to positively impact whole communities whilst attaining the highest standards of sustainability to help push cities towards a circular economy. Our partnership with IFC highlights a mutual understanding of the power of scale to drive change and a commitment to surpassing accepted norms,” said Vijay Patel, Managing Partner of Belco.
“Access to quality housing is a growing problem in Kenya and across Africa. Developers often target the high end of the market, but this project is aimed squarely at the lower-income bracket. Helping Belco identify the right partners for this project is expected to attract more developers to Kenya and other parts of Africa to help meet rising demand for housing,” said Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa.
