Kenya’s decree under the country’s “Big 4” Agenda makes clear that all of its affordable housing projects under the agenda must be be certified through the International Finance Corporation’s (IFC) green buildings standard, EDGE. The State Department of Housing created memoranda of understanding with county governments, which outline the process: developers can bid for affordable housing projects and receive the land for free from the government, so long as their developments meet EDGE certification.
One example of this partnership in action is Acorn Holdings. They were the first developer in Kenya to issue a green bond, which was $43 million, and the processed financed EDGE-certified student housing. As a result, several thousand units will be built for students and young professionals across six developments in Nairobi. The corporate bond market was previously inactive, so this issuance marked a shift in Kenya’s capital markets.
Sources:
Menes, R. (2020) EDGE standard provides key benefits for Kenya’s affordable housing developers. EDGE.
Musić, R. (2021) Building the business case for green affordable housing. Enterprise Development & Microfinance. 32(3): 179–192. Link: https://doi.org/10.3362/1755-1986.21-00013