IFC disburses Sh2.6b to Centum Re's 2,000 affordable houses

A view pof the Mzizi housing apartments by Centum Re's development. [Courtesy]

The International Finance Corporation (IFC) has disbursed Sh2.6 billion ($20 million) to Centum Real Estate (Centum RE) to finance the construction of 1,940 affordable, energy-efficient homes in Nairobi's Two Rivers Development, the companies announced on Monday.

The loan, repayable over seven years, covers nearly 20 per cent of the total $91 million Mizizi project cost, reinforcing IFC's confidence in Centum RE's large-scale housing initiatives. The World Bank's private-sector arm highlighted the project's location in Nairobi's Diplomatic Blue Zone as a strategic urban hub.

The homes, priced between Sh1.9 million and Sh10 million, are designed to cut energy and water use by over 30 per cent, featuring natural lighting and cooling systems.

Centum RE Managing Director Kenneth Mbae said 600 units in the first phase are already sold out, with construction progressing in phases.

"This facility allows us to take a long-term view in developing scalable, sustainable communities," Mbae said in a statement, noting the project aligns with Kenya's push to address a housing deficit estimated at two million units.

Centum RE, a subsidiary of Nairobi bourse-listed Centum Investment Company, has an 8,000-acre land bank across East Africa. The firm repaid a Sh3 billion bond in 2023, underscoring its financial discipline. Mbae said the IFC's endorsement would attract further investment, calling the lender "an aspirational partner."

IFC's backing signals growing institutional interest in Africa's affordable housing sector, where demand outpaces supply. Centum RE plans to replicate the model in other Sub-Saharan cities facing similar urbanisation pressures.