By John Oyuke

K-Rep Development Agency (KDA) has launched a multi-million shilling project to provide quality and affordable housing.

Dubbed ‘Kenya Affordable Shelter Project’ (Kesho), the project will spend an estimated Sh200 million in the next five years raised from equity, debt and grants.

The money will be invested in developing low-cost housing models for poor neighbourhoods.

KDA’s Managing Director, Mr Aleke Dondo said the agency is targeting to secure over 10,000 clients by 2014 in an initiative aimed at tackling urban poverty by financing basic services such as shelter, water and waste recycling.

A section of Kibera slums. The new project seeks to help people living in informal settlements to afford better housing. Photo: File

"We hope to mobilise Sh40 million in saving funds from clients towards shelter. This will help the poor access land through advocacy and by financing joint land purchase and subdivision," he said.

KDA is a research and development subsidiary of K-Rep Group mandated to research and develop financial products for the poor — those in slum areas who have traditionally been left out by formal financial institutions. Dondo said applicants must enroll with Kesho and be willing to save 10 per cent of the required amount in a self-selected group.

"They must also possess a land title deed or any other land ownership document such as, allotment letters and lease agreement and be willing to offer household assets and land as collateral," he said. Funding will be available to those acquiring land individually or as a group and those putting up new houses. The project will also fund stalled houses and renovations, installation of water tanks and wiring.

Initially, the project target areas include Nakuru Municipality and the rural towns in the environs. These include Salgaa, Bahati, Njoro, Subukia, Gilgil, Molo, and Subukia.

The agency plans to scale up the project into a specialised and semi-autonomous micro-housing entity by 2011.

Dondo said KDA together with K-Rep Bank seeks to strengthen communities to design quality and affordable housing.

The project, he notes, will also help adopt sustainable mechanisms to alleviate urban poverty by financing adequate shelter and secure land tenure towards slum upgrading.

KDA will provide technical assistance to clients to ensure quality housing while K-Rep Bank will provide the necessary financial resources and planning.

Already, KDA is implementing projects in other areas such as Asset Finance, youth entrepreneurship initiatives, agribusiness, bee-keeping and HIV/Aids infected and affected financing.