With an affordable housing deficit of 2 million units, the Kenyan government has turned to public-private partnerships (PPPs) to get housing units built while incurring no legal, financial, or performance liability. However, both the banking and housing markets are focused on upper income brackets – meaning demand has only been increasing over the years, and many residents rely on dwellings in informal settlements. The Naivasha Affordable Housing Project was launched on a 22 hectare site by the Nakuru County Government.
The project has 23 large employers acting as anchor clients, which will yield 2,400 units. The County also incorporated a housing company, due to concerns about developer liquidity, which is responsible for marketing, design, construction, financing, managing, operating, and disposing of the units. Unlike typical PPPs, procurement for Naivasha focused on using an investment offer memorandum in order to focus on capitalization of the company.
Source:
World Bank Group. (2020) Public-Private Partnerships for Investment and Delivery of Affordable Housing in Emerging Market Economies. International Bank for Reconstruction and Development / The World Bank.
Link: https://openknowledge.worldbank.org/handle/10986/34889