NHC to Develop 2,820 Affordable Housing Units through Public-Private Partnership

By James Mutua 


The National Housing Corporation (NHC) has announced plans to develop 2,820 affordable housing units under a Public-Private Partnership (PPP) arrangement. The project will be implemented on 23 acres of NHC-owned land at Stoni Athi Waterfront City in Machakos County.

Speaking at a Public-Private Partnership Investor Conference organized by NHC in Nairobi, Cabinet Secretary for Lands, Public Works, Housing, and Urban Development, Hon. Alice Wahome, emphasized the acute housing deficit in Kenya, estimated at approximately 200,000 units annually. She noted that rapid population growth and urbanization continue to drive this demand.

According to the Kenya National Bureau of Statistics and NHC’s Five-Year Strategic Plan (2023-2027), Kenya’s population is projected to increase from 50.8 million in 2022 to 55.8 million by 2028. Additionally, the labor force aged between 15 and 64 years is expected to rise from 30.4 million in 2022 to 35.1 million by 2028, further intensifying the need for affordable housing.

Government Commitment to Affordable Housing

Hon. Wahome reaffirmed that affordable housing remains a top priority for the Government under the Bottom-up Economic Transformation Agenda (BETA) and a key component of the social pillar of Kenya’s Vision 2030. She explained that to address the housing gap, the Government introduced the National Housing Policy in 2016 to attract private investments in the sector. Additionally, the Affordable Housing Programme, launched in 2017, aims to deliver at least 200,000 affordable housing units annually across the country.

She further emphasized that the Public-Private Partnership framework is designed to balance risk and reward, giving private sector investors the confidence to participate at scale. She assured investors that with the expertise of NHC, the support of the PPP Directorate, and the financial backing of the International Finance Corporation (IFC), the project is built on a strong foundation.

Facilitating Private Sector Investment

Housing Principal Secretary, Mr. Charles Hinga, assured investors that the Government is committed to creating a conducive investment environment by streamlining approvals, offering tax incentives, and providing infrastructure support to encourage private sector participation. He stated that the Government's goal is to make the investment process seamless and emphasized that by partnering with NHC, investors will be working with a reputable institution with the expertise to drive the project forward.

Strategic Partnerships for Housing Development

NHC Board Chairman, Hon. Yusuf Chanzu, emphasized that the PPP model will help bridge the housing gap by leveraging private sector expertise and capital to deliver quality and sustainable housing. He noted that NHC aims to address the shortage of both affordable and market-rate housing through this initiative and future partnerships.

NHC in Managing Director and CEO, Qs. David Mathu, outlined that the project will consist of affordable and market-rate residential units, supported by the necessary infrastructure. The housing units will follow a structured ratio, with 25% being one-bedroom units, 50% two-bedroom units, and 25% three-bedroom units. He further explained that under the terms of the Project Agreement, the selected contractor will be responsible for designing, financing, developing, and constructing the housing units, in addition to marketing the units and handing over the NHC-designated affordable housing units upon completion. He also highlighted the incorporation of environmentally friendly designs to promote sustainability and green housing.


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