Property developer Mi Vida Homes is set to build 800 affordable housing units in Riruta, Nairobi County in a project estimated to cost more than Sh2 billion.
Mi Vida, a joint venture between private equity firm Actis and Indian construction firm Shapoorji Pallonji Real Estate, will build studios, one-, two-, and three-bedroom apartments.
“This is an affordable housing project that we will be undertaking. It will be a mixed-use development comprising studios, one, two, and three-bedroom apartments,” said Samuel Kariuki, the chief executive of Mi Vida Homes.
He said the units will cost between Sh2 million and Sh6 million each based on the house type.
Mi Vida Homes said the new project will sit on about six acres which will be contributed by the landowner who will be participating in the project.
The developer added it plans on breaking ground by the end of this year. The company has not disclosed the cost of the project but it is expected to be more than Sh2 billion.
Plans to start selling the units are underway in the next few weeks, Mr Kariuki said.
Riruta area, off Ngong road, is on the outskirts of the central business district — about 10 kilometres away. The region is known for its amenities including schools, hotels, and business parks.
The real estate business is attracting more institutional investors who are implementing large-scale projects in major cities and towns.
Such projects are concentrated in the fringes of the central business districts where land is relatively cheaper.
Most of the units developed are one- to three-bedroom apartments targeting the middle class who have been priced out of the centrally located properties.
The average mortgage size last year increased to Sh9.2 million from Sh8.5 million previously, according to Central Bank of Kenya data, locking out low- to mid-income workers from a market of 26,723 home loan accounts.
Various county governments including Nairobi and Kitui are building affordable homes in partnership with private sector investors to put up units priced below Sh5 million.
Mi Vida Homes plan to start the next phase of the Garden City project after completing 221 housing units in the area along the Thika super highway.
Besides Mi Vida, other major players in the affordable housing market include Erdemann Property which has been selling apartments in Athi River at less than Sh4 million.