A study conducted by the IFC and the World Bank in 2019 focusing on how the private sector can contribute to affordable housing shows that Kenya’s accumulated housing shortage is worth about Ksh. 400 billion in value.
The data also shows the accumulated value of affordable housing shortage in other Sub-Saharan countries. Nigeria has accumulated the largest housing shortage of about $34 billion in value while Tanzania and Ivory Coast have a shortage of $6 billion and $9 billion respectively.
In total, the shortage in eleven of the top Sub-Saharan African countries accounts for approximately 3.4 million units, representing a potential formal market of over $60 billion.
Data from the report also shows that green building has a potential market size of $19 billion in Africa and a market opportunity of $1.7 billion currently.
The study shows that many emerging markets have created unrivaled opportunities under present conditions. The affordable housing sector provides opportunities for households, the construction industry, financial sector and the economy.
The opportunity requires a mix of investment and advisory services to achieve sustainable operations and increase affordability.