The National Housing Corporation (NHC) has struck a deal with the National Treasury and the International Finance Corporation (IFC) to develop a waterfront city along Mombasa Road.
The Financial Advisory Services Agreement (FASA) between the statutory body and the multinational organisation is aimed at bolstering the affordable housing project initiated by President Uhuru Kenyatta.
NHC deal worth Ksh7 billion is set to deliver the waterfront city housing project by December 2023.
NHC, developed in 1953 when the colonial government of Kenya created a Central Housing Board through the Housing Ordinance, is looking to build 3,500 houses within the waterfront city at an estimated cost of Ksh7 billion shillings.
The units will add to the Stoni Athi housing units, which are complete and available to the public.
Stoni Athi Waterfront City houses were developed on a 150-acre land at Ksh20 billion. The mixed-use development has residential, commercial, recreational facilities, schools and hospitals.
The projected targeted low and high-income earners seeking to relocate to Nairobi satellite areas.
NHC Managing Director, Patrick Bucha, explained that the agency will involved various county governments and stakeholders to deliver the housing units.
"We have talked about the issues of corporations which have a lot of land and the best thing is to partner with them and be able to assist them in the infrastructure provision," Bucha stated.
International Finance Corporation country manager, Amina Arif, noted that the organisation is working with the government to fill the housing demand gap.
She maintained the deals are through the Public Private Partnerships (PPP), which is a long-term arrangement between the government and private sector institutions.
PPP involves private capital financing government projects and services up-front and then drawing revenues from taxpayers.
The project will help in creating affordable homes undertaken by the national government.
