The remaining units are expected to be delivered in Thika, Kiambu town, Migaa, and other towns/ COURTESY
Boost to affordable housing
This comes at a time when different players have expressed interest in being part of the affordable housing agenda.
Among these include UK Climate Investments (UKCI) and FSD Africa Investments (FSDAi) who confirmed a Sh5.2 billion funding commitment to a Kenyan green affordable housing venture, towards the end of July.
The partners said the initiative has received 100 percent of its targeted Sh9 billion investor backing for the first close, enabling the locally managed fund to become operational as early this year.
The partners further reveal that the initiative is targeting the delivery of approximately 10,000 homes using modern green technologies.
The housing units will provide affordable ownership and rental opportunities with 100 percent ownership at an average cost of Sh4.5 million and rentals ranging from Sh15,000 to Sh50,000 per month.
At the same time, a report released last month projected the country’s construction sector to recover this year on the back of the government’s continued implementation of investor-friendly reforms as well as large-scale infrastructure projects aimed at boosting regional integration and economic diversification.
The report by Deloitte said the sector’s growth is expected to revamp to a growth of 6.3 percent this year.
The sector contributed about 6 percent to Kenya’s GDP and supported more than 221, 000 jobs annually in both the public and private sector on average over the past five years.
During the period, the sector also experienced a year-on-year growth of 7.8 percent on average but is estimated to have slowed down to 1.3 percent real growth in 2020 as the COVID-19 pandemic ravaged through the sector’s activity.
According to the report, infrastructure development and the integration of new industrial-economic zones are expected to spur demand for industrial space between 2021-2024.
It also stated that the completion of Phase 2A of the Standard Gauge Railway and the construction of an inland container depot in Naivasha is also expected to catalyse growth in the sub-sector between 2021-2024.
