•The proposition for the partnership includes end-user financing, sales and marketing of the project consisting of one, two and three-bedroom apartments that will range from between Sh1 million and Sh3 million.
Listed lender HF Group will finance buyers keen on acquiring units in the the government's affordable housing project in Pangani.
The firm targets to finance the purchase of 1,562 housing units under the Nairobi Urban Renewal Affordable Housing project after it signed a partnership with property developer, Tecnofin Kenya Limited.
This is expected to boost home purchases at a time when the real sector is experiencing poor sales on account of low demand attributed to tough credit conditions and constrained household disposable incomes.
The slump on demand-side has pushed house prices down by 2.3 per cent in three months to September, compared to 1.7 per cent decline in the previous quarter, according to Kenya Bankers of Association price index.
The proposition for the partnership includes end-user financing, sales and marketing of the project consisting of one, two and three-bedroom apartments that will range from between Sh1 million and Sh3 million.
They are expected to be completed by end of 2023.
“At the heart of this partnership is helping to address one of the biggest challenges the country is currently facing in a staggering housing deficit that keeps growing each year while doing so at both an accelerated pace and within the reach of Kenyans,” HF Group CEO Robert Kibaara said.
With developers decrying the high cost of land, lack of requisite infrastructure and utilities which then leads to the high cost of homes, Kibaara said such public-private partnerships offers the solution for affordable housing across the county.
“A strong PPP such as this one is critical in bringing on board the expertise, infrastructure, incentives, technology and the finances needed to make this program a success so as not to pass avoidable costs onto the end-buyers,’’ the said.
The affordable housing programme is part of the government’s efforts to reduce the housing backlog that currently stands at 2 million.
It is anticipated that 200,000 units will be built annually in line with President Uhuru Kenyatta’s Big Four agenda.