Infrastructure

Vietnam Builder Wins Sh11bn Housing Deal in Nairobi

Hoa Binh Group will oversee construction of 3,400 social housing units.

Updated on

March 5, 2024

Le Viet Hai, Hoa Binh’s board chair. PHOTO | COURTESY

Vietnamese builder Hoa Binh Group has won a Sh11.2 billion ($72 million) deal to build social housing in Kenya, venturing into the African market for the first time.

According to the deal that was sealed last month, Hoa Binh is expected to oversee the construction of social houses to accommodate the police, military, and students of the Technical University of Kenya.

Hoa Binh will supervise the design and construction of the development, which includes 3,400 apartments and associated infrastructure systems.

While making the announcement, Le Viet Hai, the company’s board chair, highlighted that Africa is foreseen to become the largest and most promising construction market across all continents in the coming decades.

“In the near term, Hoa Binh will concentrate on contracting for social housing projects before venturing into more upscale developments,” he said.

Affordable housing

Social housing generally refers to affordable housing provided by the government or non-profit organizations for individuals and families with low incomes.

But in the Kenyan project, the aim is to offer housing for the police, military, and students, promoting well-being and ensuring access to suitable accommodation.

The new deal follows Hoa Binh’s visit to the office of Prime Minister of Kenya in November last year, during which they made a pitch for collaboration opportunities between the company and Kenyan partners.

“We will bring modern construction equipment to Kenya to start the process of change and advancement,” Hai told the Prime CS Masalia Madavadi.

“We are happy to transfer know-how, experience and technological knowledge. We hope to build an ecosystem in the construction industry in Kenya based on cooperation with businesses in the construction industry together,” he added.

The company also went on a benchmarking tour at the Mwale Medical and Technology City in Western Kenya.

Meanwhile, Hoa Binh has been invited to participate in the next phase of two additional social housing projects in the country. This follows a positive evaluation of the contractors’ reputation and capabilities by the Kenyan government.

The combined scope of these projects involves the construction of approximately 6,200 apartments, valued at around Sh14.4 billion ($91.6 million).

If awarded, these contracts could elevate Hoa Binh’s total social housing construction projects in Kenya to Sh25.6 billion ($163.6 million).

Established in 1987, Hoa Binh has been a key player in the construction industry, excelling in civil, industrial, and infrastructure projects, particularly in Vietnam.