K-Rep Development Agency has partnered with IGS to construct affordable houses in Kenya. The agreement signed between the two organisations will see K-Rep Development Agency develop mortgage financing products for their clients who want to purchase affordable housing from IGSM-Kenya.
The MOU supports the K-Reps mission to develop microfinance products and services to create economic opportunities for low income people and contribute to eliminating poverty. IGS Kenya is an organization inclined towards using green material to construct houses.
This type of microfinance housing solution is a strategic move for both IGS and K-Rep Development Agency, who intend to reach their customers located in the Last Mile in Kenya. These customers have access to microfinance group based loans designed for micro-enterprise operators, who do not have conventional collateral. These types of loans are usually small in size, have a short tenor yet have yielded significant business results for their customers in agriculture specifically in the diary, floral, and grain industries. “K-Rep Development Agency develops financial products and services for our customers allowing them to significantly improve their businesses process and profits with much needed capital. Now, with IGS we can develop a new service line of micro financing mortgages by partnering with IGS and their affordable housing solution. Our customers will be thrilled with the ability to purchase a new, affordable, modern home for their families.” says Dora Waruiru, Managing Director K-Rep Development Agency.
IGStructures are made from an Alternative Building Technology (ABT) known as Compressed Agricultural Fiber (CAF) Panels and when combined with a pre-engineered steel framing system are used for houses, schools and healthcare facilities. The Pilot program, focused on selected locations, will be adopted by the leaders in the communities who have successfully used K-Rep Development Agency micro financing services to improve their businesses. “Our customers know how to make every shilling count and those who have seen the benefit of our micro financing loans to improve their businesses, will use the same type of service to improve their personal living situation, which for them is a game changer.” says Waruiru.
Because the majority of K-Rep customers own their own land, K-Rep will assist the prospective home owner to select the proper IGStructure that fits their financial abilities and needs. The benefit of using the IGS technology is speed and flexibility. Once the builder completes the exterior finishes and the house is watertight, minimal interior finishing is needed before the new home owner can move in, allowing them to complete the interior on their own timeline as their budget permits. IGS will educate and provide K-Rep Development Agency employees the IGStructures house designs, finishing options and pricing. IGS will also select, certify and monitor authorized builder(s) which, will ensure the houses are built to international standards and customers receive a certificate of compliance and occupation.
To meet the needs of the K-Rep Development Agency pilot project, IGS Kenya has imported IGStructures from IGS Manufacturing Worldwide located in Fort Worth, Texas. For future orders, IGS is completing its first in country manufacturing facility located in Thika, Kenya, and will be operational in the first quarter of 2016.
Building affordable houses in Kenya is seen as a key step towards boosting housing in Kenya.
