The International Finance Corporation (IFC) on Tuesday, July 18, announced plans to fund the construction of 5,000 affordable houses in the country.
In a project disclosure document seen by Kenyans.co.ke, IFC will finance the affordable housing plan championed by President William Ruto to a tune of Ksh 3 billion (USD 20.9 million).
Nairobi Metropolitan was highlighted as the key target area with other counties which were not named also set to benefit.
However, 15 per cent of the funding will target counties outside the capital.
"The proposed IFC investment is an equity co-investment package by IFC of up to Ksh3 billion (USD 20.9 million) to invest along with IHS Kenya Green Housing Partnership LLP and IHS Kenya Green Housing SCS," read the statement in part.
"Targeted is the development and acquisition of approximately 5,000 newly developed, resource-efficient, green affordable housing properties in Kenya."
According to the documents Ksh 1.5 billion will come from IFC with the remainder of the money being taken from the organisation's UK-IFC Market Accelerator for Green Construction Program (MAGC).
"The Fund will be managed by IHS Kenya Green Housing Fund GP Limited (“GP”), through its main investment management team based in Nairobi," IFC stated.
"IFC will utilize a “sidecar” investment structure by using a newly created special purpose vehicle that will have IFC as its only limited partner co-investing alongside the Fund in selected investments."
The board of the US organisation will sit on August 25 to finalise the discussion of the funding.
Following the investments Ruto's housing fund is set to get a major boost following the push of the affordable housing programme in the country.
As per the Head of State, the government through a partnership with the private sector will build at least 200,000 houses in one year.
