The Property Developers’ Association is pushing to strengthen professional management of Kenya’s affordable housing developments to deliver long-term value.
As governments and private developers ramp up construction to address the housing deficit, the industry leaders are shifting focus from merely building units to managing them effectively, arguing that a lack of professional oversight could jeopardise the entire program.
Through a partnership between Kenya Property Developers Association and Kenya National Chamber of Commerce and Industry, the plan will let property managers and realtors manage the houses.
The push for professional management comes as many affordable housing projects in the past have faced significant challenges.
Issues such as inadequate maintenance, poor garbage collection, unresolved tenant disputes and a lack of financial transparency have plagued some estates.
“We have onboarded in the first round over 30 realtors who are supporting us on putting these homes into households and buyers. So again, a significant business opportunity that is unprecedented,” said KPDA chairman Ken Luusa.
The Affordable Housing Board will act as the largest owner of the units for the first nine years, with responsibilities for upkeep and ensuring the properties appreciate in value.
Over 60 property managers and realtors have already been engaged to oversee professional management.
The partnership is also among others looking to open doors to new financing models to tackle affordable housing and sustainable urban development.
KPDA is seeking to leverage technical expertise, practical experience, and on-the-ground challenges faced by its members to work with KNCCI, the umbrella body for business in Kenya, for greater national reach, a voice to push for policy reforms, leveraging the entrenched networks KNCCI enjoys across sectors of the Kenyan economy.
“From streamlining approval processes, advocating for consistent policies, and creating a stable environment that attracts investment, we will move from fragmented requests to coordinated advocacy,” said KPDA chairman Ken Luusa.
According to KNCCI, Kenya’s real estate sector contributes about 10 per cent of GDP, making it one of the fastest-growing industries.
It is estimated that 22 per cent of Kenyans live in cities, and the urban population is growing at a rate of 4.2per cent every year.
Nairobi is ranked among the top 5 fastest-growing real estate markets in Africa.
Kenya requires approximately 200,000 new housing units annually to meet demand, yet only 50,000 homes are built, leaving the housing deficit growing by 150,000 units per year.
As a result of this mismatched supply and demand, housing prices have increased by 100per cent since 2004.
KNCCI President Eric Rutto said that increased construction activity can become an important source of revenue through processing of permits, approvals, and other related activities.
“Affordable housing is a government priority under the Kenya Vision 2030 and Big Four Agenda. Rising demand in urban areas—especially Nairobi, Mombasa, Kisumu, and Nakuru—has fueled expansion in gated estates, apartments, and mixed-use developments,” said Rutto.
Kenya faces a housing deficit of 150,000 units annually, with demand far outstripping supply.
Officials say the new framework, to be unveiled in mid-October, will create a transparent process for private sector participation and ensure the affordable housing programme remains a key driver of economic growth and social transformation.
