Kenya: EIB backs EUR 180 million initiative to build thousands of affordable and energy efficient homes
25 November 2021
New scheme to address shortage of affordable housing in Kenyan cities
Construction programme to build energy, water and resource efficient homes
Once built homes to be available for rent or rent-to-own schemes
The European Investment Bank today formally agreed to support a EUR 180 million initiative to scale up affordable housing in Kenya. The EIB is providing EUR 36 million in equity investment to support plans by International Housing Solutions Kenya to build more than 8,200 new affordable and energy efficient homes and help address the chronic shortage of housing for low and middle income families.
Werner Hoyer, President of the European Investment Bank and Kioi Wambaa, Managing Director of International Housing Solutions Kenya confirmed the EIB support and highlighted how the close cooperation between African and European partners will improve the lives of thousands of people in Kenya, cut bills and reduce energy and water use..
“The European Investment Bank is committed to improving lives and working with partners across Africa to develop more sustainable cities for future generations. The EIB’s new cooperation with leading specialist housing partner International Housing Solutions will scale up investment essential to tackle the chronic shortage of affordable housing in Nairobi and cities across Kenya.” said Werner Hoyer, President of the European Investment Bank.
“The European Investment bank is pleased to support this visionary new investment that will deliver social and environmental benefits beyond addressing housing needs. The new investment is a model for housing investment in Africa and its impact will be strengthened by the IHS’s unique expertise as the leading affordable housing fund manager across sub-Saharan Africa.” said Thomas Östros, European Investment Bank Vice President responsible for Eastern and Southern Africa, and development.
“By partnering with EIB, our trusted partner, and other Investors in pooling resources towards the provision of affordable green housing, we are determined to demonstrate that green affordable housing shall be a reality and is capable of attracting long term investment, together with the expected social and environmental benefits to all.” said Kioi Wambaa, Managing Director of International Housing Solutions Kenya
The European Investment Bank is investing in the IHS Solutions Kenya fund alongside Kenyan, African and international equity investors.
A pipeline of housing projects is currently being prepared following completion of initial financing for the IHS Kenya Fund in recent months.
Tackling the shortage of quality homes for middle-income families
The new initiative will provide different unit-type apartment housing for families with a household income of between KES 50,000 and KES 150,000.
Building homes that focus on saving energy and water
The new housing initiative will focus on building homes and housing units that use best-practice design to reduce energy and water use. Once complete residents will benefit from cooler homes in warm months. The new homes will enable lower electricity and water bills and reduce carbon emissions.
EIB strengthening presence in Africa
The first cooperation between the EIB and IHS Kenya was announced ahead of the formal launch of the EIB’s new regional hub for East Africa.
EIB President Werner Hoyer and Vice President Thomas Östros are spending four days in Kenya meeting political, business and financial leaders on their first official visit to Africa since the pandemic.
The European Investment Bank is the world’s largest international public bank and last year provided more than EUR 5 billion for new investment across Africa.
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On his first official visit to Africa since that start of the COVID-19 pandemic, European Investment Bank President Werner Hoyer and Vice President Thomas Östros today formally opened the EIB’s new Nairobi Hub with Kenyan Finance Minister, Cabinet Secretary Ukur Kanacho Yatani.
New investment by companies active in sectors most challenged by the COVID-19 pandemic will be accelerated by a new EUR 50 million targeted financing initiative launched in Nairobi today by the European Investment Bank and the Cooperative Bank of Kenya. The new business financing programme will also be supported by European Union grants.