European Investment Bank Supports Affordable Housing in Kenya

Strategic Insights -

The European Investment Bank (EIB) has backed the development of Kenya's first green affordable housing fund, committing EUR21.5 million in equity financing to the IHS Kenya Green Housing Fund. This investment aims to provide energy-efficient and affordable housing to low- and moderate-income Kenyans. The fund is working on three housing projects in Nairobi, with a combined 664 units, and has a pipeline of over 2,600 additional units. The "Muzi Stawi" complex in Nairobi's Garden City Precinct is 90% complete, with over 200 apartments planned for completion by October 2025.

Key Takeaways:

  • The EIB's EUR21.5 million investment in the IHS Kenya Green Housing Fund aims to provide affordable housing to low- and moderate-income Kenyans.
  • The fund has three ongoing projects in Nairobi, with a combined 664 units, and a pipeline of over 2,600 additional units.
  • The "Muzi Stawi" complex in Nairobi's Garden City Precinct is 90% complete, with over 200 apartments planned for completion by October 2025.
  • More than 7 million of Kenya's approximately 12 million households live in urban areas, with most residing in informal settlements and unable to afford decent housing.
  • The EIB's investment supports climate action by promoting energy and water savings in affordable housing.
  • The IHS Kenya Green Housing Fund invests in the development and acquisition of green-certified, affordable properties in Kenya, with a focus on low- and moderate-income segments.
  • The fund has received backing from other equity investors, totaling EUR83.4 million in total commitments.

Statistics:

  • EUR21.5 million: EIB's investment in the IHS Kenya Green Housing Fund.
  • 664: Combined number of units in the three ongoing housing projects in Nairobi.
  • 2,600: Number of additional units in the pipeline of the IHS Kenya Green Housing Fund.
  • 90%: Completion percentage of the "Muzi Stawi" complex in Nairobi's Garden City Precinct.
  • 200: Number of planned apartments in the "Muzi Stawi" complex.
  • 7 million: Number of Kenyans living in urban areas who are unable to afford decent housing.
  • 12 million: Approximate number of households in Kenya.
  • EUR83.4 million: Total commitments received by the IHS Kenya Green Housing Fund from equity investors.

Sources:

  • European Investment Bank press release
  • IHS Kenya Green Housing Fund press release
  • Kenya Population and Housing Census (KPHC)
  • Kenya Institute for Public Policy Research and Analysis (KIPPRA)
  • United Nations Environmental Programme (UNEP)