Groundbreaking for Kes50billion housing project in motion

AFRA Holdings Pte through its subsidiary arm, Singapura Developers, is set to break ground for one of its flagship housing projects in the country.

The Singaporean firm which began operations in Kenya two years ago, made the announcement today saying it will break ground for the USD500million or Kes50billion development by end of July this year, with the project seeking to put up 8,888 housing units in Mavoko, Machakos County.

The seven-phased multibillion project is expected to take off subsequently and is hoped to be complete in its entirety by 2024 or 60months if no snags are realised.

“We are splitting this project into 7 phases of construction. Each 18 months and total project duration in about 60 months or less if all goes well. Phase 1 of this unique project will tentatively commence from 3^rd quarter of this year or July,” said Mahesh SK, the project’s chief investments officer at a press conference in Nairobi.

Mahesh said the project will be undertaken through a mix of financing models that would gradually rope in local financing institutions and banks for mortgage bankrolling to individuals taking up the project’s units – whose off-plan marketing commences this Saturday.

Singapura Developers has partnered with Habitat Housing Cooperative Society and Sustainable Housing Solutions (SHS), with the latter’s unique technology to be employed for the construction studio, 1, 2 and 3 bedroom units as well as 60 retail units.

The housing units will range from Sh3.5million for a one-bedroom unit types, Sh4.2million for a one bedroom and Sh5.8million for a three-bedroom house.

The announcement comes hot on the heels of an ongoing push by the Kenyan government to construct at least 500,000 affordable housing units in five years, in an effort to meet the housing deficit in the country under its Big 4 Agenda that has also captured food security, manufacturing and affordable healthcare for all its citizens.

President Uhuru Kenyatta on Wednesday formally launched Kenya Mortgage Refinance Company (“KMRC”) whose creation is expected to contribute to the Affordable Housing agenda to address inherent financing challenges and unlock liquidity for affordable housing to Kenyans.

Financing solutions can play a catalytic role in stimulating both supply and demand of affordable housing and can help create momentum for other underlying reforms outside the sector.

KMRC will play a sole purpose of providing secure long-term funding to primary mortgage lenders (Banks & Saccos) in order to increase availability and affordability of housing loans to Kenyans and it will be regulated by the Central Bank of Kenya as a non-deposit taking financial institution, with the Capital Markets Authority (CMA) providing oversight over its bond issuance operations.

The housing deficit in Kenya stands at 2 million continues to grow at a rate of about 200,000 units a year.