Kenya has a strategic location in East Africa, and many companies looking to expand in this region are looking at Kenya as a market entry point.
The growth in Kenya’s middle class has led to an increase in demand for residential real estate, and the speed of urban population growth currently exceeds the rate of development of new houses. Kenya’s state-run National Housing Corporation estimates the current housing shortage at 2 million units. Current production of new houses is estimated at 30 000 units per year.
Kenya’s government is currently looking to the private sector to address the housing deficit and in 2012, the government introduced new regulations to allow PPPs to be used to develop new housing projects. Three PPP housing projects for public servants totalling 76 000 units are currently in the development pipeline. In the private residential market, urban developers in Kenya are currently adopting a ‘high density’ approach to scheme design
– such as apartments – and a bigger plot ratio in order to make optimal use of available land. The National Housing Corporation estimates the current housing shortage at 2 million units. Current production of new houses is estimated at 30 000 units per year. To continue reading click here…