The Kenya Property Developers Association (KPDA) and the Kenya National
Chamber of Commerce and Industry (KNCCI) have signed a memorandum of
understanding (MoU) to accelerate the delivery of affordable housing in the
country.
The partnership, sealed on Tuesday, seeks to unlock new financing models, streamline approval processes, and foster consistent policy advocacy to make the housing sector more attractive to investors.
KPDA chairman Ken Luusa said the agreement will
reduce fragmentation in the industry by encouraging coordinated efforts between
developers and the business community.
“From streamlining approval processes to advocating for consistent policies,
we want to move from fragmented requests to coordinated advocacy,” Luusa said.
Kenya faces an acute housing deficit.
The country requires at least 200,000 new housing units annually, but
delivers only about 50,000, leaving a shortfall of 150,000 units each year.
As a result, house prices have risen by more than 100 per cent since 2004,
putting home ownership beyond the reach of many families.
KNCCI President Dr. Eric Rutto highlighted the
economic potential of the construction sector, noting that housing projects
generate significant employment.
“It is estimated that for every unit constructed, there are three to five new jobs created,” Dr. Rutto said, adding that urban demand in Nairobi, Mombasa, Kisumu, and Nakuru continues to drive the need for affordable homes.
Speaking at the MoU signing ceremony, the Affordable Housing Board (AH Board) Chair, Jerry Simu, highlighted the progress the Government of Kenya has made under the Affordable Housing Program.
He noted that the Board has successfully reduced construction costs, mobilised more than 100 private sector actors, including 25 consortia for housing development, and assembled a pool of professional consultants to supervise projects.
The program, he added, has created thousands of jobs for young people and provided a major boost to the Jua Kali sector, with artisans producing doors, windows, and other fittings on a large scale.
The MoU is expected to support the
government’s affordable housing agenda under Vision 2030.
However, questions remain over whether new financing models will produce
genuinely low-cost homes for ordinary Kenyans.
Past initiatives have been criticised for focusing on middle- and
high-income developments, leaving low-income households underserved.
Experts also warn that oversupply in high-end
office and retail space underscores the need for developers to shift their
focus toward housing and infrastructure that reflects actual demand.
According to KPDA, the partnership will
leverage KNCCI’s national reach to lobby for reforms that lower housing costs.
But observers say the success of the collaboration will depend on how well
these commitments are translated into projects that meet the needs of everyday
Kenyans.
