City Hall plans to hold an investors forum with potential developers and financiers for the development of its large-scale housing project in various Nairobi estates.
The county says it expects to complete financial negotiations by April to begin the first phase of 140,000 housing units at a cost of Sh40 billion.
“We are providing land equity and we will be seeking development capital with private parties as well as end use financing from a bank to offer mortgages,” the Planning and Housing executive Tom Odongo said.
The county government currently owns 17,000 housing units in prime land areas just outside the central business district.
The first phase will include new and old Ngara, Pangani, Jivanjee bachelors, Uhuru and Woodley estates.
City Hall also plans to setup over 100,000 housing units under the ‘Eastlands Urban Renewal Project’, where the county has only 9,557 units on 2,000 acres with some houses as old as 60 years in Kaloleni, Shauri Moyo, Makongeni, Ziwani and Pangani estates.
Although earlier reports had indicated that City Hall had already partnered with two Chinese companies to put up 55,000 apartments in Eastlands, Mr Odongo said they would hold an investor conference to invite all interested parties.
The county official said the cost of the housing units will depend on the socio-economic status of the residents, adding that the development will include rental houses as well as those to be mortgaged at a cost lower than current market rates.
Once the new apartments are done, priority will be given to the county’s tenants to replace the old houses that are falling apart. Residents living on extensions built on county property will also have an opportunity to rent or own houses.
City Hall houses purchased by tenants in Uhuru, Huruma, and Jamhuri estates will however not be affected by the redevelopment project.
Mr Odongo insisted that the project will not disrupt livelihoods or displace anyone as construction will begin on open spaces before demolitions.
“In Woodley for example, traders will be relocated as we put up a new market and move back once it’s complete,” he said.
Once the investment conference is held, City Hall is expected to request for proposals before the procurement process begins. Shadow designs are currently being generated for the different locations.