10,000 affordable houses are set to be constructed in Kenya following a Sh 5.2billion commitment made by the UK Climate Investments (UKCI) and FSD Africa Investments (FSDAi) to a Kenyan green affordable housing venture.
The initiative has received 100% of its targeted Sh9 billion investor backing for the first close, enabling this locally managed fund to become operational as early as July 2021. The houses will be delivered using modern green technologies.
The housing units will provide affordable ownership and rental opportunities with 100 percent ownership at an average cost of Sh4.5 million and rentals ranging from Sh15,000 to Sh50,000 per month. The investments from UKCI and FSDAi are expected to deepen and strengthen the UK Government’s commitment to supporting a green post-Covid-19 recovery in Kenya. Richard Abel, Managing Director of UKCI, said the investment represents an inspiring opportunity to model how sustainable building designs can help fight the effects of climate change.
Increasing urban populations
“The need for affordable housing in Kenya is greater than ever with urban populations increasing by more than 4 percent in the last five years. Our investment is meeting this need and will benefit thousands of Kenyans currently without affordable housing,” said Mr. Abel.
Data collected by the investment partners reveals that despite the booming demand for affordable housing in Kenya, only 50,000 new homes are built each year compared to a target of 250,000 housing units. This has resulted in un-affordable housing prices and the continued growth of the city’s informal settlements. They further reveal that nearly half of Nairobi’s population lives in slums where construction standards are poor and unsustainable, and access to essential services is limited.
The development of green affordable housing will focus on increased availability to the low to the middle-income population.The investment mainly targets Nairobi, and will contribute to the country’s goal of building 500,000 new affordable homes by 2022, which is part of President Uhuru Kenyatta’s ambitious big four agenda.
