UK Climate Investment (UKCI) is set to invest US $39m into Kenya’s affordable housing program by financing the construction of 10,000 affordable homes, largely boosting the government’s affordable housing pillar. UKCI is a joint venture between the Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy.
According to UKCI Managing Director Richard Abel, the increase in Kenya’s urban population, brings with it the need for new affordable housing. “The capital injection will help address this challenge adding that the opportunity would also showcase how more sustainable building designs can help tackle the effects of climate change,” he said.
British High Commissioner to Kenya Jane Marriott OBE said the UK was proud to partner with Kenya to tackle the pressing challenges of affordable housing. “UK Climate Investment’s £30 million anchor investment will help build affordable, climate-friendly homes and promote green building standards in Kenya,” she said.
Housing deficit in Kenya
According to World Bank Kenya has a housing deficit of 2 million, which has been growing at a rate of about 200,000 units per year. Last week, the government received the first 228 complete housing units out of the 1,370 under construction at the Park Road Project in Nairobi.
The funds will be delivered through a locally managed strategy targeting US $72.9m-US $249m worth of investor commitments. The national affordable housing project targets to build at least 500,000 new homes over the next two years.