World Bank's IFC To Invest KSh 3 Billion In Kenya's Affordable Housing Project

• IFC has signed an investment agreement for approximately KSh 3.2 billion into the affordable housing projects in Kenya
• According to IFC, the financing deal will support the development of 3,400 affordable housing units in Kenya
• The affordable housing project initiative, operating under a Public Private Partnership (PPP) model, aims to address the annual housing deficit estimated at 200,000 units

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing insights into both Kenyan and global economic trends.

The International Finance Corporation (IFC), a member of the World Bank Group, has officially sealed an equity investment deal amounting to $20.9 million (about KSh 3.2 billion) with IHS Kenya.

International Housing Solutions (IHS), a South African private equity fund manager owned by a U.S. entity, is actively engaged in the construction of 5,000 affordable houses across Kenya.

According to IFC, the financing deal will support the development of 3,400 affordable housing units in Kenya.

IHS has secured financial support from diverse institutional investors dedicated to investing in affordable housing initiatives in Kenya, primarily in the development of affordable houses in the Nairobi metropolitan area.

"IHS has sourced funds from various institutional investors to invest in affordable housing in Kenya. Its target area is the Nairobi metropolitan area with expansion to other counties depending on demand," read the statement in part.

Signing the agreement

The agreement, inked on December 15, 2023, at the IFC/World Bank Headquarters in Upperhill Nairobi, signifies a strategic partnership between the IFC and IHS Kenya.

“The IFC investment is an equity co-investment package by IFC of up to €19.3 million (approximately $20.9 million, or KSh 3.2 billion) to invest along with IHS Kenya Green Housing Partnership LLP and IHS Kenya Green Housing SCSp (the Fund) in the development and acquisition of approximately 5,000 newly developed, resource-efficient, green affordable housing properties in Kenya,” said the IFC in a statement.

The IHS Kenya Green Affordable Housing Fund, launched in 2021, aligns with Kenya's broader affordable housing initiative, identified as a key policy area by the current Kenya Kwanza administration.

Impact of the housing project

This initiative, operating under a Public Private Partnership (PPP) model, aims to address the annual housing deficit estimated at 200,000 units.

As the project unfolds, it is anticipated to contribute significantly to narrowing the housing gap and promoting economic growth in the region, as well as contribute to job creation in the construction sector, as often reiterated by President William Ruto.

Affordable housing projects creating jobs for Kenyan youths

As previously reported by TUKO.co.ke, Ruto has insisted on the importance of affordable housing projects in creating employment for Kenyan youths in the construction industry, giving an example of a jua kali group that was awarded a KSh 140 million tender to supply windows and doors.

Speaking during the International Trade Union Congress (ITUC) Africa Conference on Tuesday, November 28, William Ruto further reiterated the project's commitment to creating jobs for Kenyans.

“There are three things I said I would do in my tenure. One is a robust housing programme, not because we are looking for houses but because housing creates millions of jobs. I want to report that in the last eight months, we have created 120,000 jobs from our housing plan,” said Ruto.