Following President William Ruto’s ambitious housing plan, the International Finance Corporation (IFC) has announced its commitment to fund the construction of 5,000 affordable houses in Kenya.
With a staggering sum of Ksh 3 billion placed for the project, the IFC intends to address the nation’s housing challenges.
According to the project disclosure document obtained by Kenyans.co.ke, the primary focus of the initiative will be the Nairobi Metropolitan area, with other unnamed counties also set to benefit. Most important, 15 per cent of the funding has been allocated to counties outside the capital, demonstrating a commitment to inclusivity and equitable development.
“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.”
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Of the Ksh 3 billion pledged, Ksh 1.5 billion will come directly from the IFC, while the remaining funds will be sourced from the 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 final decision on the funding will be made during the board meeting of the US-based organization on August 25. The IFC’s involvement in this ambitious housing plan adds a stamp of international approval, further enhancing its credibility and potential for success.
President Ruto’s vision aims to construct approximately 200,000 houses in just one year, achieved through a synergistic partnership between the government and the private sector. This goal, once achieved, will significantly alleviate the housing crisis that has been an issue for quite some time.
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