The European Investment Bank’s (EIB) financial backing for IHS Group’s first green affordable housing fund in Kenya is yielding results.
The bank’s development arm, EIB Global, had committed €21.5 million (Sh3.2 billion) in equity financing to the IHS Kenya Green Housing Fund, for the construction and acquisition of energy-efficient and affordable housing in Kenya.
IHS Kenya is now working on three housing projects in Nairobi, with a combined 664 units.
There are 10 other projects in the pipeline consisting of over 2,600 units in Nairobi and Kiambu.
Construction of the “Muzi Stawi” complex in Nairobi’s Garden City is almost 90 per cent complete.
This was announced during the inaugural of “IHS Kenya Affordable Housing Conference” in Nairobi.
The project involves the construction of more than 200 apartments, made up of both one-bedroom and two-bedroom units.
Construction started in January 2024 and the units are expected to be ready by October 2025.
More than seven million of Kenya’s 12 million households live in urban areas, with the bigger number of that population residing in informal settlements, according to the Kenya Population and Housing Census.
“With housing costs rising, we are working with experts, planners and policymakers to improve living conditions, reduce energy costs and support climate-friendly urban growth,” said Edward Claessen, the head of EIB’s Eastern Africa regional office.
He added “At EIB Global, we combine both financing with non-financial contribution in the form of technical assistance and advisory services to implement projects with local partners like IHS.” The EIB supports affordable housing by offering flexible financing – including direct loans to social and affordable housing providers, and also by working with special purpose financial intermediaries such as equity funds.
The goal is to improve social cohesion and the quality of life of vulnerable groups whose housing needs are not met by the market.
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 of the population. In the Muzi Stawi project, the units will be available for rent to the open market.
The Fund has also received the backing of other equity investors amounting to €83.4 million (Sh12.3 billion) in total commitments.
“Our investments reflect our ambition to redefine what affordable housing can be. We are on track to deliver about 4,000 quality and affordable green homes by 2030,” said IHS Kenya Managing Director Kioi Wambaa.
“EIB Global’s investment with IHS Kenya aligns with our goals to address the critical need for affordable housing in Kenya.”
