How Sh27.8b project is revamping informal settlements in urban areas

The government’s bid to formalise land ownership through the issuance of  title deeds and the provision of critical services in 38 informal settlement schemes across the country is expected to boost Kenya’s aspirations of sustainable urban development.

The ongoing issuance of title deeds has prompted the scheme’s occupants to invite and partner with property developers, among other investors, in modernising their buildings and providing crucial amenities.

Under and ambitions Kenya Informal Settlements Improvement Project (KISIP 2), being administered by the State and development partners, the issuance of title deeds is expected to shield the parcels of land from grabbers and end doubts over ownership.    

KISIP 2, a Sh27.8 billion programme financed by the government to the tune of $15 million (Sh2 billion), the World Bank ($142 million or Sh18.4 billion), French Development Agency (AFD) at €45 million (Sh6.8 billion) and a €4.45 million (Sh669 million) grant from the European Union.  

The project being implemented by the Ministry of Housing and Urban Development focuses on infrastructure upgrading, provision of essential amenities like water, drainage, electricity, and roads, improving housing quality and issuing title deeds.  

KISIP coordinator in charge of Kiambu County Julius Mwololo, noted that the issuance of title deeds has opened up the areas to new investors and enabled the inhabitants to use the documents as security when borrowing money from the local commercial banks.  

“The provision of critical services has opened avenues for new investors, thus increasing land value and the emergence of new businesses, leading also to the creation of new jobs,” said Mwololo during an interview recently at Fort Jesus informal settlement scheme in Gitambaya in Ruiru, Kiambu County.

In counties of Kiambu, Embu, Kirinyaga and Nyeri, which are among beneficiaries from the critical services, land prices have increased by between 87 per cent and 1,200 per cent over the last 16 years.     

For example, in the Fort Jesus informal settlement scheme, prices of land have increased by close to 1,200 per cent from Sh1 million in 2016 for a plot of 50x100 to about Sh13 million in 2026. 

These are plots that original dwellers had acquired at Sh5 in the 1960s. In Kiangombe village in Thika, since 2028, property prices have increased by between 200 per cent and 400 per cent.  

Urban regeneration

According to Embu County Deputy Director of Physical Planning, Nahashon Mucheru, the programme is aimed at restoring dignity to residents while contributing to Kenya’s broader goals of sustainable urban development.

During a media tour in Embu, Kirinyaga, Nyeri and Kiambu counties, residents pledged to partner with investors, including the Affordable Housing Board, in changing the face of the settlement schemes.    

The World Bank Group’s 2023 Kenya Country Climate and Development Report estimates that 28 per cent of Kenyans live in urban areas and the same proportion is expected to increase to 46 per cent by 2050.

“Under the KISIP 2 programme, residents in informal settlements will benefit from block title deeds, quality sewer systems, roads and street solar-powered lights.  This programme seeks to create inclusive, safe, and sustainable cities in line with Kenya Vision 2030 and the United Nations’ Sustainable Development Goal 11 - Make cities and human settlements inclusive, safe, resilient and sustainable,” said Mucheru. Residents in areas like Majimbo informal settlement in Manyatta Sub-county of Embu, which houses over 300 people, are optimistic that the new documents will help in opening up the areas to new investors to arouse new development.

The title deed process has sparked optimism among Majimbo’s residents, who view it as a pathway to improved infrastructure and a more secure future. “We are open to partnerships with new investors and property developers that will improve our community. The title deed process gives us hope for a more secure and better future,” Stephen Ireri, who is also Chairman of the Settlement Executive Committee in Majimbo.

Under  KISIP 2, the Majimbo settlement scheme established in 1993 by Plan International will soon receive block title deeds, which will help to unlock development opportunities, including potential high-rise buildings as part of the government’s affordable housing programme.

In Kirinyaga County, most of the informal settlement schemes were colonial setups and hence will benefit from the urban extension.  

“We are in talks with the national government about the best ways to integrate these new developments. This is a major step towards improving living conditions and creating opportunities for better housing,” Mucheru added.

Despite this optimism, residents like Veronica Njue still face significant challenges. Njue, a mother of three, lamented the poor state of housing in Majimbo, with many houses having leaking roofs, which makes life difficult during the rainy season.

“Most of us depend on casual labour, and during rainy seasons, we struggle with leaks and impassable roads, hence we are not able to go to work,” Njue said.

In Kiawara village in Mweiga of Nyeri County, property prices, especially plots (50 x100) have increased by 200 per cent since 2010. This, according to Mark Thuo, a landlord in the area, follows construction of physical infrastructure -roads, water, streets, and drainage systems.

“We have in recent years encountered investors scouting for investment opportunities in our area, for example, those who want to set up shopping malls, schools, private hospitals and general businesses,” said Thuo.

In Kiambu County’s Umoja settlements scheme under the KISIP 1 & 2 programme, 164 households were issued with 60 single and joint title deeds.  The settlement has equally benefited from concrete roads, street lights and drainage.

“The title deeds issuance process influenced the increase in plot prices by between 87 and 150 per cent respectively. This paved the way for the entry of new investors who bought the land parcels from some of our members,” said Philip Thenge, the chairman of the settlement executive committee.