The Kenyan government is set to construct 100 000 affordable housing units in line with the Big 4 agenda following an agreement with the United Nations Office for Project Services (UNOPS) to finance the project.
“Our Affordable Housing Program seeks to implement interventions that will ensure that developers can produce housing units at scale, home buyers can access affordable financing facilities that allow them to buy homes, and that the enabling environment facilitates innovation, embraces technology, and commercial arrangements that can bring down the cost of construction,” said President Uhuru who witnessed the signing of the agreement.
Grete Faremo, UNOPS executive director said creating affordable homes is currently their focus in the social impact investment initiative. She added that as much of a priority it is to provide adequate and sanitary homes, they give importance to providing social and economic opportunities all while stimulating economic growth and development.
The Social impact investment initiative by UNOP falls under UN’s commitment to the Sustainable Development Goals (SDGs). It seeks to attract finance from private sector as it de-risk infrastructure investment projects.
Kenya stands at 2 million housing deficit. This number grows at a rate of 200, 000 units every year. A report done by World Bank indicates that the cause of the deficit is the high rate of rural-urban migration. This is also influenced by the population growth rate verses the annual available housing units.
The president said that that for every unit built, 3 to 5 direct jobs and 8 indirect jobs will be created and for every dollar invested, the country anticipates that up to three times will be realised in the greater economy.
The housing project is also subject to a thorough due diligence process which maps out the financial return and the positive socio-economic impact.