, NAIROBI, Kenya, Apr 25 – Tatu City has set aside 300 acres for the construction of 10,000 affordable houses that will complement the Government’s Big Four-goal of providing 500,000 homes in five years.
Construction of the affordable houses will likely begin in 12 months, says Nick Langford, Country Head of Randeavour, the company developing the mixed development project, 18 kilometres from Nairobi.
The houses, which will cost between Sh1.5 million and Sh5 million, will be part of Tatu City’s 5,000 acre development which includes a mix of residential estates, office parks, industrial zone, schools and hospitals.
“The cost does not provide the developer with any return (especially at the lower end of the price) but it does de-risk the project and satisfies the need for Kenyans to own homes,” says Langford, who was speaking at the sidelines of the East Africa Property Investment Summit in Nairobi.
Langford adds that Randeavour is already engaging investors who are interested in financing the affordable housing project after a master plan is developed and the finalization of a business plan and feasibility plan.
The financing options include a mix of share ownership and/or a pre-purchase agreement where an investor buys a considerable number of units which will guarantee off-take
Some of the financiers who have shown interest in the project include the International Finance Corporation, UK’s development finance institution, CDC, and the International Housing Solutions.
Langford says the 10,000 houses will be home to nearly 40,000 people who will need amenities and good infrastructure
“Government can help by delivering the infrastructure and by guaranteeing the off-take of some of the units.”
Tatu City recently off-set 300 acres of industrial land out of the 450 acres it had allocated to this segment and has opened a 2.5Km road from the highway to the industrial park.