Browsing: Affordable housing

An affordable housing set up at Tatu City, Kenya. Affordable housing remains an elusive dream for many.

Nairobi’s real estate sector is experiencing a shift as a new class of assets emerges, including data centres, grade A offices, affordable housing and purpose-built warehousing even though global capital in emerging markets is waning.

Over the past decade, the city’s development pipeline has been through multiple cycles transforming Nairobi’s real estate sector especially retail sector development.

First came the commercial offices’ boom in Nairobi’s real estate sector at the start of the decade driven by global capital in emerging markets, then the retail boom halfway through this period and now, a shift in focus to alternative sectors focused around the themes of flexibility, accessibility and affordability especially in the grade A offices segment.

Read: Nairobi, most expensive city in east africa

This is according to the Nairobi Development Pipeline Report by Pan-African real estate data company, Estate Intel in collaboration with Axis Real Estate Limited.

Tilda Mwai, Research Associate …

Africa’s infrastructure deficit has been an existential hurdle that has stagnated the continent’s development.

Inarguably, infrastructure remains a vital enabler for productivity and sustainable economic growth across all sectors. Albeit efforts have been made to help seal the deficit, Sub-Saharan Africa’s infrastructure continues to lag behind other regions globally.

With Africa’s population growing faster than any other continent, efficient transport networks, clean green energy, reliable communication systems, and affordable housing - all comprise of the different forms of infrastructure - are a dire necessity. There is an urgent need for roads, ports, railways, dams, pipelines as well as power and telecommunications networks which offer numerous benefits especially in boosting business and commerce. 

According to the World Bank, between 2000 and 2010, the advances in African infrastructure investment were more impactful in driving growth than any other form of capital investment. To boot, Agenda 2063 on the Africa We Want, encapsulates

Kenya’s Stima Savings and Credit Cooperative (SACCO) Limited has launched its Affordable Housing Mortgage Scheme in partnership with the Kenya Mortgage Refinance Company (KMRC), a treasury backed lender, targeting both individuals in formal and informal employment.

The purpose of the scheme is to offer affordable mortgages to members of the SACCO with bespoke terms.

For individuals who are employed, the SACCO will offer a loan up to a maximum of Sh4 million, at 9 percent interest rate, with a 25-years repayment plan.

For individuals in business or those with rental income, the loan will still be capped at Sh4 million, at 9.5 percent interest rate, with a repayment tenor of up to 20 years.

According to analysts from Cytonn Investment, an employed individual will be required to make monthly payments of about Sh33, 600 while a business home owner will pay Sh37, 300.

For salaried Kenyans, these payments are still …

Kenya’s construction industry is projected to grow by up to 3.9 percent this year, according to a new report by the Architectural Association of Kenya (AAK).

The report, dubbed Status of the Built Environment report, AAK however cautions that the growth can only happen if there is no repeat of the strict lock down that were implemented in the country last year after the emergence of the coronavirus pandemic.

The report says growth will be driven by several factors among them a sharp recovery in output levels compared to periods when works were not permitted or were severely restricted in 2020.

“In 2021, the construction industry is expected to improve, assuming a slowdown in COVID-19 cases and recovery in the global economy,” the report notes.

Kenya to start construction of double decker highway as World Bank consents to funding

The report notes that the second quarter of the year, for …

By 2030, nearly half of Kenyans will be living in cities as many young people keep moving to urban areas in search of jobs, opportunities and more choices. 

With half of Kenya’s population aged under 18 and with the mass movement to urban areas, the housing challenge will continue until it is sustainably addressed 

In 2018, the government of Kenya started a journey towards providing 500,000 decent, affordable housing units by 2022.

Read: Kenya, Rwanda to benefit from IFC housing project

This plan was meant to address the nation’s chaotic living status where the majority, especially in urban areas, have been forced to live in informal settlements due to various factors including low incomes and the rural-urban migration which has seen urban populations outpace facility development in the areas they move in to. 

The government’s plan, under what was dubbed the Big 4 Agenda was to see low-cost housing

The affordable housing sector in Kenya is well set to provide attractive opportunities to investors.

This is according to Vivian Ombwayo, Director of Research and Valuation at Broll Kenya who said this will be driven by the government’s investment in the 2021-22 national budget into the sector, combined with attractive incentives for private developers.

Commenting on the same, Jess Cleland, COO Outside of SA, Valuations & Intel at Broll said the affordable housing sector in Kenya offers developers an opportunity to diversify their portfolios, especially those concentrating on the commercial-user space.

“It means they are able to diversify into the residential sector, thanks to attractive government incentives,” he added.

Vivian and Cleland spoke when they presented a research report on the sector at the eighth annual East Africa Property Investment (EAPI) Summit.

The experts added that the abundant housing opportunities in Kenya also allow complementary users to be included in …

Shelter Afrique, Pan-African housing development financier signed a Memorandum of Understanding (MOU) with two Chinese construction firms to scale up the development of large-scale affordable housing projects in Kenya and its member States.

The two Chinese construction firms are Amberton International Holdings and Sichuan Huashi Enterprise Corporations E.A. LTD, with the MoU expected to boost Shelter Afrique’s mandate of providing decent and affordable housing in Africa.

The MoU was signed by Andrew Chimphondah, Shelter Afrique Chief Executive Officer, Nancy Yu, Amberton International Holdings Director and Sichuan Huashi Enterprise Corporations E.A. LTD Managing Director Cao Zheng.

“As a company, our overriding strategy is the provision of affordable housing across our member States through public-private partnerships.  This strategic partnership with Amberton and Huashi will be key in expanding our projects across the continent as we draw from the experiences of the two companies. Shelter Afrique will work closely with Amberton International Holdings …

Global emphasis on ‘stay at home’ orders has affirmed the strategic position of housing as the frontline defence against spread of the novel coronavirus.

Having a roof over your head has never before been critical in providing protection against contracting and spreading a virus as it is now.

Housing is today helping to keep many from the deadly bug by allowing populations meet essential requirements like physical distancing and quarantine for those infected in COVID-19.

In Kenya, where fixing housing deficit is still a pipe dream, many households are exposed to the dangers of the pandemic especially the poor living in informal settlements.

Currently, the recommended social distancing is a mirage, an unimaginable luxury for slum dwellers who live in already crowded areas where large families are forced to share a single and quite smaller rooms.

For instance, picture out how two-thirds of 4.4 million would achieve social distancing on …

After signing a deal with a Rwandan bank to build 2,000 affordable housing units, Shelter Afrique is heading to Senegal in West Africa for a similar deal.

The Pan African housing developer has signed a US$11.6 million line of credit with Senegal’s Teyliom Group for the construction of affordable housing units.

Shelter Afrique says the money will go toward the development of affordable housing with the world-class Diamniadio Lake City (DLC).

The deal with Teyliom Group is the first significant project Shelter Afrique has embarked on in Senegal since 2016 and is the second transaction the Company is making with the Teyliom Group.

When complete, the project is expected to deliver large-scale affordable housing of 3,439 units with selling prices starting at US$26,000 for more than 20,000 individuals and create more than 3,000 jobs, with a sizeable number of those being held by women.

The high-density estate has been designed …

By 2030, nearly half of Kenyans will be living in cities as many young people keep moving to urban areas in search of jobs, opportunities and more choices.

With half of Kenya’s population aged under 18 and with the mass movement to urban areas, it means that the housing challenge will continue until it is sustainably addressed.

Already, the UK has pledged support for Kenya’s plans to deliver affordable housing.

Kenya urbanizing rate higher than continent’s average

Kenya’s quest to provide quality housing is mired in controversy since the government does not have a clear plan on how the houses will be allocated.

This is despite Kenyans being forced to contribute to the scheme through deductions to their salaries every month, a move the government has now backtracked on due to its unpopularity and following a court ruling against it.

According to Shelter Afrique, Kenya’s growing urban population needs sustainable, …