UK Climate Investments (UKCI) and the UK Government have entered into a partnership to invest up to $39 million towards affordable green housing projects Kenya.
The capital commitment is part of a locally managed strategy targeting $80-250 million of investor commitments intended to finance the construction and development of 10,000 energy and water-efficient homes in Kenya.
UKCI’s commitment and eventual investment are geared towards incorporating green standards in the Kenyan market by demonstrating the viability of environmentally sustainable building design. The commitment will also create a new green asset class for local investors.
The investment will cut Nairobi’s housing shortage and contribute to the country’s goal of building 500,000 new affordable homes by 2022.
Richard Abel, managing director of UK Climate Investments, said: “As Kenya’s urban population grows, the need for new affordable housing has never been greater. The commitment we have announced today represents an exciting opportunity to help address this challenge – financing the construction of new affordable homes whilst showcasing how more sustainable building design can help tackle the effects of climate change.”
Jane Marriott, British High Commissioner to Kenya, said: “The UK is proud to partner with Kenya to tackle the pressing challenges of climate change and affordable housing.”
She said UKCI’s $30 million anchor investment will help build affordable, climate-friendly homes and promote green building standards in Kenya.
The IFC EDGE certified homes financed by UKCI’s commitment will use at least 20 percent less electricity and water than conventional Kenyan homes. Further, the homes will also be built using materials with 20 percent less embodied energy
UKCI is a $260 million pilot venture between Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy. The fund has investments in India and sub-Saharan Africa.