PAN African housing financier Shelter Afrique is seeking partnerships with developers to construct affordable houses for the middle and low-income housing segments.
The regional company which said the top-tier market is saturated, noted that there are many opportunities in peri-urban areas due to a large population of low-income earners.
For the bulging urban population to live in decent houses, Shelter Afrique stated, the government will have to give incentives to developers to construct affordable houses.
“The impression is that the market is saturated, and that is only true for the top tier of the market, we still have a long way to go to providing affordable housing. Not just affordable as well, but quality, and in achieving that, the market narrows when you need to find able developers, that is why this is a welcome sign,” said the firm's managing director James Mugerwa.
He added: “Housing is currently overpriced and suits the top tier but neglects middle to low-income earners. Nothing will change till there is government policy to address this.”
The housing financier is betting on apartments in satellite towns within commuting distance to the city. This, Mugerwa said, is because about 40 per cent of Nairobi's population, about 1.45 million people, commutes daily to and from satellite towns around the city.
Shelter Afrique has funded the ongoing construction of Glenwoods apartments in Ruaka in neighbouring Kiambu county which comprises 440 units.
The one and two-bedroom apartments are scheduled to be ready by June next year and will be sold from Sh5.5 million.