Economy

UK pledges Sh8 billion for Kenya affordable housing scheme

Foreign-UK

UK Foreign Secretary Dominic Raab. PHOTO | JEFF ANGOTE | NMG

Summary

  • Kenya is set to receive at least Sh8 billion from the UK to fund the construction of affordable housing.
  • UK Foreign Secretary, Dominic Raab said Wednesday the funding — which would come in tranches — is part of the UK government’s support of President Uhuru Kenyatta’s vision of providing 100,000 affordable housing to Kenyans.

Kenya is set to receive at least Sh8 billion from the UK to fund the construction of affordable housing.

UK Foreign Secretary, Dominic Raab said Wednesday the funding — which would come in tranches — is part of the UK government’s support of President Uhuru Kenyatta’s vision of providing 100,000 affordable housing to Kenyans.

Of this amount, Sh1 billion will be from the UK funded InfraCo and another Sh7billion from private investors, both coming in as part of the UK government’s investment on infrastructure in Africa.

“The Sh8 billion (£53 million) deal — including Sh1 billion (£7 million) from UK-funded InfraCo and Sh7 billion (£46 million) of private investment – will mean affordable housing for 10,000 Kenyans. The project is through Acorn Housing – President Kenyatta attended the launch of Kenya’s first green bond on the London Stock Exchange(LSE) by Acorn a year ago,” Mr Raab said in Nairobi yesterday.

He did not provide details on the funding arrangement.

The Foreign Secretary, who was on his first official visit in the country, also announced an additional Sh7.2 billion which he said will be channelled towards the mitigation of climate change across the country.

The visit comes in the backdrop of a historic exit deal signed between the UK Prime Minister Boris Johnson and the European Union last December, ahead of the lapse of the Brexit transition period.

Kenya and the UK are negotiating a five-year Strategic Partnership signed between the two countries in January last year and which is set to strengthen the ties of the two nations post-Brexit.

In the deal signed by Mr Kenyatta on his official visit to Britain, the two nations are expected to benefit from relations involving education, trade, counter-terrorism, security among other issues.

Foreign Affairs Cabinet Secretary Raychelle Omamo yesterday said the visit by Mr Raab was aimed at reaffirming and promoting the deal.

“We have a strong partnership with the UK ...and our meeting has sought to reflect on these areas of cooperation.”