Mystery investor seeks to build 100,000 low cost homes in Kenya

An unnamed foreign investor is seeking to fund construction of 100,000 low cost houses in Kenya, in a move that signals the lucrativeness of the State-backed affordable housing scheme.

Transport, Housing and Infrastructure Cabinet Secretary James Macharia on Tuesday disclosed that the planned low cost housing blueprint has attracted high profile financiers who have expressed interest to build up to one million units countrywide.

“Actually one investor has expressed interest to fund 100,000 units. The project is no longer a vision, but a reality,” Mr Macharia said in an interview.

The government had initially planned the construction of 500,000 houses, but this figure is likely to double if investors’ proposals happen to see the light of day.

The project is expected to cost Sh1.5 trillion.

Although the terms of funding are yet to be made public, it is believed that the Kenyan government has handed out generous incentives to lure some of the world’s top financiers into the scheme.

Indeed, Mr Macharia had earlier (December 2017) said that the project would be too lucrative for investors – mostly Chinese multinationals – to resist.

“We have had talks with the Chinese government and they are looking into investing in this fund. They are into big infrastructure projects but given the returns that are expected when this housing project comes into fruition, they definitely want to be part of it,” he said.

According to Mr Macharia, construction of the houses is set to begin shortly after March 1 when formally employed workers begin paying a 1.5 percent salary deduction to finance the project.

“The project is now clear and will be launched in a few weeks. The first 2,000 units will be constructed in Park Road in Nairobi,” the minister said.

The State, which will provide parcels of land to developers who will then prepare site and architectural plans for the identified projects, is fronting the use of precast wall panels and pillars as a means to expedite the project.

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