Browsing: Affordable housing

An affordable housing set up at Tatu City, Kenya. Affordable housing remains an elusive dream for many. www.theexchange.africa

Data Centres for example have seen their market supply increase to approximately 10 MW. Interestingly, over 80 per cent of this stock has come up over the past 5 years, with the development pipeline looking even more promising at approximately 470 per cent of total stock.

The industrial sector, too, continues to be one of Nairobi’s leading real estate market sectors. Developers’ interest matched with occupiers’ demand especially in the SMEs, agricultural and FMCG sectors means that there are unlimited opportunities in the market for investors.

With only 11 per cent of the total stock estimated at 17 million sq. ft under development, the market remains largely undersupplied especially with regards to purpose-built warehousing. As such, investors are increasingly exploring the space with private equity or investor-operator type models. Quite notably, over 80 per cent of the projects in the pipeline tracked by Estate Intel are already under construction, while …

Most African countries lag behind the rest of the world in the coverage of key infrastructure classes including energy, road and rail transportation, together with water infrastructure. Development of Africa’s infrastructure has been met by colossal roadblocks, which have largely stemmed from the endemic systemic corruption that continues to ail the continent, making it one of the biggest hurdles to development. Consequently, this has made attracting foreign investment a nightmare.

This further affirms the description by McKinsey and Company that the continent faces an infrastructure paradox whereby Africa’s track record in moving projects to financial close is poor. Despite the high demand for projects, sufficient supply of capital and investors, coupled with voluminous potential projects there is insufficient investment in infrastructure projects within the region. 

Presently, more than two-thirds of the global population without access to electricity is in Sub-Saharan Africa, which is an equivalence of 600 million people. For…

Kenya’s Stima Savings and Credit Cooperative (SACCO) Limited has launched its Affordable Housing Mortgage Scheme in partnership with the Kenya Mortgage Refinance Company (KMRC), a treasury backed lender, targeting both individuals in formal and informal employment.

The purpose of the scheme is to offer affordable mortgages to members of the SACCO with bespoke terms.

For individuals who are employed, the SACCO will offer a loan up to a maximum of Sh4 million, at 9 percent interest rate, with a 25-years repayment plan.

For individuals in business or those with rental income, the loan will still be capped at Sh4 million, at 9.5 percent interest rate, with a repayment tenor of up to 20 years.

According to analysts from Cytonn Investment, an employed individual will be required to make monthly payments of about Sh33, 600 while a business home owner will pay Sh37, 300.

For salaried Kenyans, these payments are still …

Kenya’s construction industry is projected to grow by up to 3.9 percent this year, according to a new report by the Architectural Association of Kenya (AAK).

The report, dubbed Status of the Built Environment report, AAK however cautions that the growth can only happen if there is no repeat of the strict lock down that were implemented in the country last year after the emergence of the coronavirus pandemic.

The report says growth will be driven by several factors among them a sharp recovery in output levels compared to periods when works were not permitted or were severely restricted in 2020.

“In 2021, the construction industry is expected to improve, assuming a slowdown in COVID-19 cases and recovery in the global economy,” the report notes.

Kenya to start construction of double decker highway as World Bank consents to funding

The report notes that the second quarter of the year, for …

The government’s plan, under what was dubbed the Big 4 Agenda was to see low-cost housing provided for those earning between KSh15,000 (US$150) to KSh49,000 (US$50). There was also a plan to cover those with little or no income at all. 

But questions on how the houses would be allocated threw cold water on the project which sounded like a scam every time government officials tried to explain the proposal and how it would work.…

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The affordable housing sector in Kenya is well set to provide attractive opportunities to investors.

This is according to Vivian Ombwayo, Director of Research and Valuation at Broll Kenya who said this will be driven by the government’s investment in the 2021-22 national budget into the sector, combined with attractive incentives for private developers.

Commenting on the same, Jess Cleland, COO Outside of SA, Valuations & Intel at Broll said the affordable housing sector in Kenya offers developers an opportunity to diversify their portfolios, especially those concentrating on the commercial-user space.

“It means they are able to diversify into the residential sector, thanks to attractive government incentives,” he added.

Vivian and Cleland spoke when they presented a research report on the sector at the eighth annual East Africa Property Investment (EAPI) Summit.

The experts added that the abundant housing opportunities in Kenya also allow complementary users to be included in …

Shelter Afrique, Pan-African housing development financier signed a Memorandum of Understanding (MOU) with two Chinese construction firms to scale up the development of large-scale affordable housing projects in Kenya and its member States.

The two Chinese construction firms are Amberton International Holdings and Sichuan Huashi Enterprise Corporations E.A. LTD, with the MoU expected to boost Shelter Afrique’s mandate of providing decent and affordable housing in Africa.

The MoU was signed by Andrew Chimphondah, Shelter Afrique Chief Executive Officer, Nancy Yu, Amberton International Holdings Director and Sichuan Huashi Enterprise Corporations E.A. LTD Managing Director Cao Zheng.

“As a company, our overriding strategy is the provision of affordable housing across our member States through public-private partnerships.  This strategic partnership with Amberton and Huashi will be key in expanding our projects across the continent as we draw from the experiences of the two companies. Shelter Afrique will work closely with Amberton International Holdings …

Global emphasis on ‘stay at home’ orders has affirmed the strategic position of housing as the frontline defence against spread of the novel coronavirus.

Having a roof over your head has never before been critical in providing protection against contracting and spreading a virus as it is now.

Housing is today helping to keep many from the deadly bug by allowing populations meet essential requirements like physical distancing and quarantine for those infected in COVID-19.

In Kenya, where fixing housing deficit is still a pipe dream, many households are exposed to the dangers of the pandemic especially the poor living in informal settlements.

Currently, the recommended social distancing is a mirage, an unimaginable luxury for slum dwellers who live in already crowded areas where large families are forced to share a single and quite smaller rooms.

For instance, picture out how two-thirds of 4.4 million would achieve social distancing on …

After signing a deal with a Rwandan bank to build 2,000 affordable housing units, Shelter Afrique is heading to Senegal in West Africa for a similar deal.

The Pan African housing developer has signed a US$11.6 million line of credit with Senegal’s Teyliom Group for the construction of affordable housing units.

Shelter Afrique says the money will go toward the development of affordable housing with the world-class Diamniadio Lake City (DLC).

The deal with Teyliom Group is the first significant project Shelter Afrique has embarked on in Senegal since 2016 and is the second transaction the Company is making with the Teyliom Group.

When complete, the project is expected to deliver large-scale affordable housing of 3,439 units with selling prices starting at US$26,000 for more than 20,000 individuals and create more than 3,000 jobs, with a sizeable number of those being held by women.

The high-density estate has been designed …