Kenya 100,000 homes project reaches next milestone

Press Release: 31.05.19
  • New agreement signed and funding secured to start implementation
  • Construction begins: Show homes now in development in Nairobi
  • 3000 jobs for local workers expected to be created

A new agreement has been signed between Kenya’s state department for housing, UNOPS and Sustainable Housing Solutions (SHS) to move ahead with ambitious plans to build 100,000 affordable homes in Kenya. The agreement aligns to Kenya’s national development priorities to address the critical need for housing. The signing of the agreement follows an MoU between the Government of Kenya and UNOPS in September 2018 in New York after the operational arm of the United Nations accepted an invitation to construct at least 100,000 green and energy-efficient units in the country.

The construction of the landmark large-scale affordable housing project by the UNOPS is set to begin in earnest following the inking of a tripartite agreement. The Government of Kenya on the other hand will play a facilitative role by for instance committing to provide bulk off-site infrastructure including roads, water and sewer systems to the site that will greatly contribute to the development of a new and well-planned city. As part of the agreement, the Government will ensure the availability of sufficient land on which UNOPs and SHS will put up affordable houses in line with the Development Framework Guidelines (DFGs), committing at the same time to fast track the statutory approval process and the requirements needed by the partners.

 

H.E. Uhuru Kenyatta, President of Kenya said:

The project is a major shot in the arm for the Government’s championed Affordable Housing Program which is both labor and capital intensive and therefore an economic stimulus that will have a positive effect in reducing the high unemployment and poverty levels in the country. We are delighted to get this project underway as it will greatly contribute to unlocking the massive benefits to the economy that the Affordable Housing Program will have. The provision of clean, safe and sustainable housing will not only enable us to restore our people’s dignity and affirm and secure their stake in their nation but will also lead to transformative, systemic changes to the country’s economic landscape.”

 

Cabinet Secretary for Ministry of Transport, Infrastructure Housing and Urban Development James Macharia, said:

“We are really excited to put pen to paper on this three-way agreement that is a major milestone that will put us on a critical path to rolling out one of the planned mega-projects under the Affordable Housing Program. We will work collaboratively to ensure that the project, which will be done on private land and with private capital, is successfully and effectively delivered so that we can begin to change the landscape of upcoming municipalities and unlock their capacity for attracting investment that will ultimately improve our people’s living standards.”

 

Grete Faremo, UNOPS Executive Director, said:

“We are committed to supporting the Government in its sustainable development aims to provide much-needed housing across the country. We will do everything we can to ensure this project is a success.”

 

Dr. Allan Zimbler, Chairman of SHS, said:

The signing of this agreement is of great importance in addressing the need for affordable and sustainable housing in Kenya. We are proud to be working with UNOPS and the Kenyan Government in bringing to bear our innovative technologies and global partnerships in order to provide 100,000 houses for Kenyan citizens, while at the same time offering significant employment opportunities. For SHS, this is another step in attempting to build a better world.”

 

About UNOPS:

UNOPS mission is to help people build better lives and countries achieve peace and sustainable development. We help the United Nations, governments and other partners to manage projects, and deliver sustainable infrastructure and procurement in an efficient way. Read more about UNOPS: www.unops.org

 

About UNOPS Social Impact Investment Initiative (S3I):

UNOPS S3I seeks to de-risk and structure infrastructure investment projects in an effort to help attract financing from the private sector to national development agendas. Projects selected are subjected to a rigorous and comprehensive due diligence process that will ensure a positive environmental, social and economic impact, with attractive risk-mitigated financial returns for private sector investors. Read more about S3I: https://www.unops.org/about/investing-for-impact

 

About SHS:

SHS Holdings bring innovative eco-friendly housing, energy, water and health protection techniques and applies them at scale in the developing world. The concept aims to provide a ‘turn-key solution’ to reducing the current shortfall of tens of millions of decent dwellings in the developing world. SHS works with governments, NGOs and the private sector to create safer and more sustainable environments for generations to come. Read more about SHS: https://shsholdings.org

 

About Affordable Housing Program

The Affordable Housing Program (AHP) is a bold, ambitious initiative by the Government and is one of the pillars under the Big4Agenda which aims to ensure that all Kenyans particularly the low- and middle-income households have accessible and standard living spaces that promote human dignity. The program comprises critical interventions in the demand and supply side and also provides enablers and a conducive environment that aim to facilitate a private-sector led solution to support the development of 500,000 affordable housing across the country. The affordable houses will be financed and built by private developers on both private and national and county Government land. Once the houses are built, the Housing Fund and the Kenya Mortgage Refinance Company (KMRC) will offer them to the homebuyers either through long term Tenant Purchase Schemes (TPS) terms or affordable mortgages.

 

A national affordable housing web platform has been set up as a tripartite interface for potential homeowners, Government and the private investors. See this link for more information about the Program and the web platform www.bomayangu.go.ke/ahp,

 

Notes to Editors

 

  • The AHP will address the housing needs of people in the following income brackets per month:
  • Social – Below Kshs 19, 999,
  • Low Cost – Kshs 20, 000 – Kshs 49, 999,
  • Mortgage Gap – Kshs 50, 000 – Kshs 149, 999
  • Middle to high income – Kshs 150,000 and above