The European Investment Bank (EIB) has made an equity investment of Sh3.2 billion (€21.5 million) in local developer International Housing Solutions (IHS) Kenya to help it deliver more than 3,000 affordable housing units in prime neighbourhoods of Nairobi and Kiambu.
The European institution says its investment is meant to aid the construction and acquisition of energy-efficient affordable housing units in the country, specifically targeting areas traditionally out of reach for low-income earners.
Construction is already ongoing in Tilisi estate in Kiambu, and Garden City and Mashiara Park in Nairobi for 664 units targeting low-income earners whose needs have not been addressed by the market.
“With housing costs rising, we are working with experts, planners and policymakers to improve living conditions, reduce energy costs and support climate-friendly urban growth,” said Head of the EIB Regional Hub for Eastern Africa Edward Claessen.
“At EIB Global, we combine both financing with non-financial contribution in the form of technical assistance and advisory services to implement projects with local partners such as IHS.”
IHS is planning 10 other projects with a total of 2,600 units in Nairobi and Kiambu, although the locations haven't been disclosed.
“We are on track to deliver about 4,000 quality, affordable green homes by 2030. Projects we undertake are not just developments; they are a promise to the Kenyan market that affordability and excellence can go hand in hand,” said IHS Kenya Managing Director Kioi Wambaa.
“EIB Global’s investment with IHS Kenya aligns with our goals to address the critical need for affordable housing in Kenya.”
Garden City is an address that embodies modern living."
The funding is expected to help end the proliferation of informal settlements in Kenya’s urban areas while at the same time fighting climate change by increasing access to affordable energy-efficient homes for lower-income earners.
Currently. An estimated 7 million households, or about 58 percent of all households in the country, live in urban areas, with most dwelling in informal settlements due to the unaffordability of decent housing.
Other than IHS, the Linzi Finco Trust is another non-State entity involved in the development of affordable housing in Kenya, having recently floated a Sukuk bond in the Nairobi Securities Exchange.
The government is also ramping up efforts to boost access to decent housing with its affordable housing programme, which targets to construct at least 200,000 units yearly from the housing levies contributed by Kenyans.
