The county government of Nairobi has unveiled its partnership with developers to build affordable housing in parts of the city which include old estates.
According to the plan, the county will provide the developers with free land to build the houses on condition. The developers have been given 30 per cent of the buildings to be constructed to enable them recover their investment while the remaining 70 per cent must be done filled with affordable housing.
Already, the county government of Nairobi has reached an agreement with eight companies to construct low-cost houses in seven city estates.
Edermann Properties, Lordship Africa, Stanlib, KCB, Kiewa Group, Directline Assurance, Jabavu Village Limited and Technofin have been selected after the county floated a request for proposals earlier this year in April.
Most of the companies have already tried their hands in real estate development. Lordship Africa, with roots in Central Europe, is the developer of the upcomng 88 Nairobi and the Karen Hills gated community project while Ederman is the developer behind Kisumu’s Lake Basin Development Authority and a handful of other real estate developments in the commercial, residential and industrial sectors.
South African based Jabavu limited, Kiewa group and KCB have also had experience developing projects before while NSE-Listed Stanlib Fahari I-REIT will be making headways into the market with the project.
The estates to be done by these companies include Ngong Road estate Phase I, Ngong Road Phase II, Uhuru Estate, New Ngara, Old Ngara, Suna Road, Jeevanjee and Pangani. The government has instructed the developers to construct the houses with a value of between Ksh. 1m and Ksh. 3m to keep them affordable.
Source; Daily Nation