KCB to fund IHS's Sh10b green housing project

KCB Bank Kenya will provide debt financing to International Housing Solutions (IHS) to support the construction of affordable housing units and end-user financing for home buyers.

This is after the two parties signed an agreement to accelerate the development of green affordable homes in Kenya. International Housing Solutions Kenya is a developer of green affordable housing across Africa, through its IHS Fund. It is focused on delivering over 3,000 units worth Sh10 billion over the next five years.

The partnership aims to bridge Kenya's low-income housing deficit gap by ensuring a steady supply of ready-built quality homes at Tilisi Development - a master-planned, mixed-use community.

The units will be available to KCB Bank Kenya's mortgage customer base, making it easier for first-time buyers and existing homeowners.

Speaking at the signing ceremony in Nairobi, IHS Kenya Managing Director Kioi Wambaa said the partnership with KCB will enable IHS to accelerate the development and offtake of its projects - ensuring more units are brought into the market.

"This partnership reinforces IHS's focused strategy of developing green affordable housing across Kenya. Through our investment in climate-friendly affordable housing, we aim to create jobs, grow skills and stimulate economic development. With KCB's financial backing, we can accelerate our projects and bring more units to market, meeting the growing demand for sustainable housing," Wambaa said.

In addition to financing, KCB is one of the participating primary mortgage lenders in the government-backed Kenya Mortgage Refinancing Company that aims to support the government's affordable housing programmes

"This partnership provides innovative and accessible financing solutions that empower more Kenyans to own homes. Also, we are unlocking new opportunities for individuals and families to achieve their dream of homeownership," KCB Director of Mortgage Business Caroline Wanjeri said.

Kenya's affordable housing programme represents a significant effort to address the nation's housing needs.

The success of the programme hinges on a strong partnership ecosystem between financial institutions and developers to provide over 250,000 decent and affordable housing units, particularly for low-income earners.