Kenya Affordable Housing
Kenya identifies affordable housing as a top priority with a goal of adding 500,000 homes in the next five years. U.S. companies can find an advantage in offering project development, design and planning services.
Kenya is a populous and growing country with close to 50 million people,. As the economy continues to expand, more Kenyans are leaving rural regions for more urban areas in search of higher paying careers. This trend has created a demand for additional housing in cities such as Nairobi, Mombasa, and Kisumu among others.
Recognizing this need, the Government of Kenya (GOK) identified Affordable Housing as one of four top priorities and has a goal of adding an additional 500,000 homes over the next five years.
In order to spur on private sector investment and participation, the GOK has taken to streamlining processes and developed a one-stop shop within the Ministry of Transport, Infrastructure, Housing & Urban Development for companies interested in pursuing and/or developing projects. For more information on project requirements, structuring, and the existing project pipeline, please visit the GOK’s Affordable Housing website as well as the Kenyan Property Development Association website.
The GOK has passed landmark taxation reform aimed at stimulating the sector, which includes lowering the corporate tax rate to 15%, capping import levies, and providing VAT exemptions for inputs, among others. A good summary of the updates to the tax code are found within a report by Deloitte.
While the construction sector is competitive and price sensitive, U.S. companies can find an advantage in offering services related to project development, design and master planning. Additionally, providing new building technology, from modular or EPS technology, 3-D printing, and energy efficient structures, holds potential.
The Commercial Service in Kenya (CS Kenya) has strong relationships within the Kenyan Housing Ministry and can provide direct access to interested parties. Additionally, we partner with the International Development Finance Corporation (formerly known as the Overseas Private Investment Corporation) in serving as a sounding board for housing development ideas.
For more information, please contact CS Kenya at: Mary.Masyuko@trade.gov