NHC to develop 2,820 affordable houses through public-private partnership

National Housing Corporation houses along the Southern By pass in Langata, Nairobi. [File, Standard]

The National Housing Corporation (NHC) has announced plans to develop at least 2,820 affordable housing units under a public-private partnership (PPP) arrangement.

The project will be implemented on 23 acres of land owned by NHC at Stoni Athi Water Front City in Machakos County.

Speaking at an investor conference organised by NHC at a Nairobi hotel, Lands, Public Works, Housing, and Urban Development Cabinet Secretary Alice Wahome highlighted the country's acute housing deficit of approximately 200,000 units annually.

She noted that this demand continues to grow due to rapid population growth and urbanisation.

According to statistics from the Kenya National Bureau of Statistics and captured in NHC's five-year strategic plan, Kenya's population is projected to rise from 50.8 million in 2022 to 55.8 million by 2028.

Additionally, Kenya's labour force aged between 15 and 64 is expected to increase from 30.4 million in 2022 to 35.1 million by 2028, further intensifying the demand for affordable housing.

"To address this housing gap, the Government of Kenya introduced the National Housing Policy in 2016 to attract private investments in the affordable housing sector.

Additionally, the Affordable Housing Programme, launched in 2017, aims to deliver at least 200,000 affordable housing units annually across the country," CS Wahome said.

She said the affordable housing programme remains a key priority for the government under the Bottom-up Economic Transformation Agenda and also an important component of the social pillar of Kenya Vision 2030.

Through this PPP initiative and others to come, NHC seeks to address the shortage of affordable and market rate housing in Kenya, banking on private sector expertise and capital to deliver quality and sustainable housing.

NHC managing director David Mathu said the project will consist of both affordable housing units and market-rate residential units, supported by the necessary infrastructure.

The houses will include one-bedroom, two-bedroom, and three-bedroom units.

"Under the terms of the project agreement, the selected contractor will be responsible for designing, financing, developing, and constructing the housing units.

"Additionally, the contractor will market the units and hand over the NHC-designated affordable housing units upon completion," said Mathu.

"We are looking at employing environmentally friendly designs to drive sustainability and green housing."

The event was also attended by Housing and Urban Development Principal Secretary Charles Hinga and NHC board chairman Yusuf Chanzu.