Kenya’s quest to provide affordable housing got a boost after listed lender Housing Finance (HF) group signed a partnership with Tecnofin Kenya Limited, which is developing 1,562 affordable housing units in the city’s Pangani estate under the Nairobi Urban Renewal Affordable Housing project.
The proposition for the partnership includes end user financing, sales and marketing of the project consisting of one, two and three bedroom apartments that will range in cost from between Sh.1 million and Sh.3 million.
“Key in this partnership is helping to address one of the biggest challenges the country is currently facing – a staggering housing deficit that keeps growing each year, while doing so at both an accelerated pace and within the reach of Kenyans. This is the second major deal we have signed in as many weeks underlying our strategic focus on affordable housing,” said HF Group CEO, Robert Kibaara.
The Pangani Housing Project is an initiative by the Nairobi City County Government in partnership with Tecnofin Kenya Limited to renew and re-create Pangani Estate by way of providing dignified and affordable housing for residents of Nairobi.
In line with the realities of the time, Pangani Estate developed in the 1950s was previously accommodating 48 residents on a vast 5.2 acre property.
The Tecnofin Executive Director, Robert Muchoki says the project now aims at increasing the number of units on this property to meet the growing demand for housing in the city.
“The Pangani development offers exceptional value across the board with innovative social and affordable house concepts that are efficient and spacious for families coupled with large green spaces that promote sustainability and freedom,” said Muchoki.
With developers decrying the high cost of land, lack of requisite infrastructure and utilities which then leads to high cost of homes, HF Group CEO touted such Public Private Partnerships as the solution to achieve affordable housing across the county.
“A strong public private partnership such as this one is critical in bringing on board the expertise, infrastructure, incentives, technology and the finances needed to make this program a success so as not to pass avoidable costs onto the end-buyers,” Kibaara said.
He added that the Group will continue working with developers to create products that empower people to own homes in support of the Big Four Agenda.
The affordable housing programme is part of the government’s efforts to reduce the housing backlog that currently stands at two million. It is anticipated that 200,000 units will be built annually in line with President Uhuru Kenyatta’s Big Four agenda.
By Joseph Ng’ang’a