Residential Projects

Kenya Seeks Partners to Build 33,000 Low-Cost Homes

Project meant to ease countrywide shortage of affordable housing.

Updated on

July 17, 2020

Low cost homes — Some of the units will be sold for Sh1 million. PHOTO | FILE

The Kenyan government is seeking joint venture partners to build 33,336 low-cost houses across the country as part of its plan to deliver 500,000 affordable units in five years.

Through the State Department for Housing and Urban Development, the government has invited investors for joint venture partnerships in developing affordable housing units.

“Through the Specially Permitted Procurement Procedure, the State Department for Housing and Urban Development wishes to invite investors for a joint venture to get into a strategic partnership in developing (low-cost units),” the state department said on Tuesday.

Most of the houses will be built at the Nairobi Railway City, where at least 20,000 low-cost houses will be developed and sold to civil servants, pension schemes, and the public.

The joint venture partners are expected to build another 13,336 housing units in various towns across the country under the affordable housing programme.

These include 2,000 units in Homa Bay, 2,000 units in Kisumu, 400 units at Nyanchwa in Kisii, 300 units on Uganda Road in Eldoret, 134 units at Bondeni in Nakuru, 798 units next to Ruring’u stadium in Nyeri, 354 units near Meru General Hospital in Meru, and 150 units at Kengereni in Mombasa.

Others include 204 units at Kanisa Lane in Garissa, 288 units at Province Area in Garissa, 200 units at Milimani in Murang’a, 200 units at Kiharu in Murang’a, 908 units at Milimani in Kakamega, 2,200 units at Ol Kalou in Nyandarua, and 1,300 units (Stoni Athi Housing Phases 2-4) in Machakos.

The investors will also build 300 units (Changamwe Infill Housing Phase 3) in Mombasa, 100 units (Bububu Housing Phase 2) in Mombasa, 200 units (Eldoret Kapsuswa Housing Phase 1) in Eldoret, and 500 units (Kisumu Kanyakwar Housing Phases 3-4) in Kisumu.

They will also set up 200 units (Siaya Housing Phase 1) in Siaya, 100 units (Narok Infill Housing Phase 1) in Narok, 100 units (Kajiado Infill Housing Phase 1) in Kajiado, 200 units (Pumwani Housing Phase 3) in Nairobi, and 200 units (Meru Tuntu) in Meru.

The government will make public land available to joint venture partners for the construction of housing units. This will result in a direct benefit to homeowners in that the cost of land shall not be factored into the selling price of the houses.

“By availing land to the project at no cost, the government makes it possible for homeowners to purchase tastefully designed, decent, and adequate housing at costs of as low as Sh1 million in some of the most attractive locations,” the state department said.

A raft of incentives awaits successful joint venture partners, who will be considered to be strategic partners in the State-backed affordable housing programme.

These benefits include corporate tax reductions of up to 15 per cent, fast-tracked project approvals, adoption of low-cost building technology, and VAT exemption on materials.

They will also get a chance to market their houses to a database of more than 300,000 potential homebuyers who have registered as members of the Boma Yangu housing platform.

Prospective investors with “ready financing” have up to July 28, 2020, to submit their bids.