Financing, tax uncertainty affecting affordable housing drive – IHS
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International Housing Solutions Kenya says expensive financing and tax uncertainty are slowing the country's affordable housing push, as it unveils a Sh1 billion, 240-unit development in Tilisi.
Kenya's efforts to close its housing deficit face major hurdles ranging from expensive and inadequate financing to tax uncertainty, with the private sector calling for stronger collaboration with government to unlock investment in affordable homes.
International Housing Solutions Kenya managing director Kioi Wambaa said delivering affordable housing at scale will require patient capital, predictable tax policies and a stronger partnership between the public and private sectors. Kenya continues to face an accumulated housing deficit of more than two million units, according to the World Bank, with demand growing by between 200,000 and 250,000 units annually.
IHS Kenya unveiled Muzi Salama, a Sh1 billion residential development at Tilisi in Limuru that will deliver 240 two- and three-bedroom apartments. The project combines quality construction, sustainable design and professional property management, and is designed around energy and water efficiency with EDGE certification planned.
Wambaa said more than 70 percent of people in Nairobi are renters, meaning the largest demand is for rental rather than owner-occupied housing. He backed continued collaboration between government, developers, financiers and other stakeholders, saying no single player can address the housing shortage independently.