Kenya: Chinese firms awarded US $7bn low-cost home project

The ministry of Housing and Urban Development in Kenya has awarded Chinese Wu Yi Company Limited, Sinohydro Corporation and China Roads and Bridges Corporation tender to build 1,500 low-cost homes on Nairobi’s Park Road.

According to the tender document published by the ministry, the developer is expected to build 400 units from the commencement date of the project. The developer will then be paid 20% upon completion of the 400 units and 40% upon project completion and another 40% after defect liability period.

Sinohydro Limited and China Road and Bridge Corporation have in the past have undertaken projects such as the SGR, Nairobi’s northern bypass and the Thika Super-Highway. This comes in effort to enhance public-private partnership (PPPs) as part of President Uhuru Kenyatta’s “Big Four” agenda that seeks to construct 500,000 low cost houses by 2022.

The Cabinet Secretary of Housing and Urban Development said the use of free public land and building of infrastructure such as power, roads, electricity and water have been catered for by the ministry.

Nairobi will be the first county to benefit from the project with a start of the 1,500 low-cost homes. The housing units will include 105 one-bedroom units, 540 two-bedroom units and 855 three-bedroom units on 7.9 acres of land bordering Park Road Primary School and the Muslim Academy.

To occupy the homes, home owners will be expected to pay at least US $6000 to US $30,000. The taxpayers are also expected to finance the cost of designing, and identifying cheaper building technology. Total cost of the 5-year project involving 800,000 units for sale and 200,000 social housing units in the slums amounts to US $23bn.