European Investment Bank to Support Affordable Housing in Kenya

The EIB will provide €36m ($40,6m) in equity investment to support plans by International Housing Solutions Kenya to build more than 8,200 new affordable and energy efficient homes and help address the chronic shortage of housing for low and middle income families. Werner Hoyer, President of the European Investment Bank, and Kioi Wambaa, Managing Director of International Housing Solutions Kenya, confirmed the EIB support and highlighted how the close cooperation between African and European partners will improve the lives of thousands of people in Kenya, cut bills and reduce energy and water use. Hoyer said the EIB is committed to improving lives and working with partners across Africa to develop more sustainable cities for future generations: “The EIB’s new cooperation with leading specialist housing partner International Housing Solutions will scale up investment essential to tackle the chronic shortage of affordable housing in Nairobi and cities across Kenya.” A pipeline of housing projects is currently being prepared following completion of initial financing for the IHS Kenya Fund in recent months. The initiative will provide different unit-type apartment housing for families with a household income of between KES 50,000 ($444) and KES 150,000 ($133). The housing initiative will focus on building homes and housing units that use best-practice design to reduce energy and water use. Once completed residents will benefit from cooler homes in warm months. The new homes will enable lower electricity and water bills and reduce carbon emissions. “By partnering with EIB, our trusted partner, and other investors in pooling resources towards the provision of affordable green housing, we are determined to demonstrate that green affordable housing shall be a reality and is capable of attracting long term investment, together with the expected social and environmental benefits to all,” said Wambaa. The cooperation between EIB, the world’s largest international public bank, and IHS Kenya was announced ahead of the formal launch of the EIB’s new regional hub for East Africa. Thomas Östros, EIB Vice President responsible for Eastern and Southern Africa, and development: “The European Investment Bank is pleased to support this visionary new investment that will deliver social and environmental benefits beyond addressing housing needs. The new investment is a model for housing investment in Africa and its impact will be strengthened by the IHS’s unique expertise as the leading affordable housing fund manager across sub-Saharan Africa.”