Pan-African housing development financier, Shelter Afrique has been elevated into a development bank in a historic move that promises to reshape the landscape of African housing and urban development. This follows the approval by its shareholders during the Extraordinary General Meeting (EGM) in Algiers, Algeria between 4th -5th of October. The renaming of Shelter Afrique, according to a statement, “solidifies its status as a transformative and sustainable development bank” that is completely committed to developing urban housing and related infrastructure development throughout Africa. The transition will be visible, according to managing director Thierno-Habib Hann, through greater housing unit finance and construction as well as better access to decent, sustainable, and affordable housing. The bank said that the change will also bring it into compliance with international norms and put it in the forefront of financiers for the housing sector. “This will also place us at par with peer Development Finance institutions (DFIs),” the company stated. Some of the key highlights of the financier’s transformation are as follows; International Alignment The new Agreement aligns the Bank to international standards granting the institution a leading position among housing sector financiers and placing it at par with peer Development Finance institutions (DFIs). The diversification of the shareholding and Board composition into Class A (African States), Class B (African Institutions) and Class C (International and Private sector) will ensure financial sustainability and best-in-class Corporate Governance.  Enhance Housing Development Impact and Shareholder Value The Bank will generate and maintain robust positive financial returns by posting and monitoring key performance indicators on liquidity, profitability, asset quality, efficiency, and productivity. ShafDB’s strategic vision is also to expand its portfolio offering to include thematic areas across the housing value-chain, such as Green/Climate/Resilience, Gender, Jobs (SMEs/Trade), Trunk Infrastructure, Islamic finance, IDPs (Migrants/Refugees), and Diaspora. This will be achieved via specialized funds in the Asset Management business. Improve Organizational Sustainability The repositioning of ShafDB through the revision of its Statutes will further strengthen its adherence to the highest standards of Corporate Governance and align the Bank’s structures to international frameworks and best practices. The inclusion of an Advisory Board composed of representatives of the Ministry of Finance and international experts will strengthen the strategic and financial management capabilities of the Bank. Generally, the core mandates include delivery of financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain focusing on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships. Shelter-Afrique Development Bank (ShafDB) is a Pan-African institution solely dedicated to financing and promoting housing, urban & related infrastructure development across the African continent. ShafDB operates through a partnership involving 44 African Governments, as well as the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re). It delivers financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain. As a premier provider of financial, advisory, and research solutions, ShafDB focuses on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships, striving to achieve sustainable developmental impact.    

Real estate developer Mi Vida Homes has signed an investment deal with International Housing Solutions (IHS) to develop the ‘237 Garden City’ housing project, pointing towards timely delivery. Under the agreement, which is subject to regulatory approvals, IHS Kenya Fund will acquire two hundred units within the project. The project is the third by the property developer at Garden City, which is a 47-acre mixed-use development situated along Thika Road. Speaking during the announcing ceremony in Nairobi, Mi Vida Homes CEO Samuel Kariuki, said the purchase agreement, at an undisclosed fixed price, will enable the developer mitigate market risk, which is a challenge to scaling for the wider housing market. “Through this partnership, we have a guaranteed market for the apartments we are building. Our main goal is to guarantee timely delivery and sustainability at every stage of the project, including planning, building and project management,” Kariuki said. IHS Kenya managing director Peter Mayavi reiterated the purchase agreement will guarantee Mi Vida Homes a ready market, thus boosting the confidence of both the developers and other stakeholders. He added that the pact is timely because Kenya has a pressing need for housing that is not only affordable, but offers the quality that ensures users get a dignified living. “A key way of ensuring this goal is removing the market risk for developer partners because this will now catalyze the development of large-scale projects such as 237.” Kenya faces a shortage of about two million housing units every year, against a current supply of only 50,000 new housing units. The units in the 237 development are a mix of one-bedroom and two-bedroom apartments. IHS is a private equity fund manager investing in green affordable housing across Sub-Saharan Africa. It additionally partners with other financial institutions, development financiers, investors, land owners and developers to increase the stock of quality, affordable green housing in the Kenyan market. It intends to build sustainable city communities where residents will live close to public transportation, create jobs through their developments, and work with non-profits to solve inequality in the real estate industry. Within the next seven years, IHS Kenya intends to provide up to 4,000 affordably priced apartments for both sale and rental. Further, IHS is an asset manager of six affordable housing funds in the Southern African region and manages  a listed REIT on the Johannesburg Stock Exchange. It boasts of a solid track record in the African affordable housing space with operations across four countries in the Sub-Saharan African region (South Africa, Namibia, Botswana and Kenya), and is a wholly owned subsidiary within the US- Hunt Companies group, a real estate and infrastructure fund manager. On the other hand, Mi Vida is a residential developer created through a joint venture between Actis, a leading growth markets investor who have been active in the region for over 70 years and Shapoorji Pallonji Real Estate (SPRE), the real estate arm of one of India’s largest conglomerates. Was officially launched in July 2019 to address the shortage of middle-income housing that families can afford, by delivering a minimum of 3,000 middle-income housing units over the next five years. It is embodied in works of innovative design, modern engineering, trusted construction, on-time delivery and an impeccable record.

Nairobi’s real estate market has seen significant changes, with house prices recording a notable increase. This surge is a reflection of global economic shifts, particularly in response to fluctuating interest rates. As Kenya’s capital continues to climb the ranks in global property markets, understanding the factors behind this growth is crucial for potential investors, homeowners, and the general public. Nairobi’s Rapid Climb: Nairobi has made a remarkable leap in the global real estate market, moving from 19th to 6th place in terms of property price growth. According to a quarterly report by Knight Frank, the city recorded a 6.6% increase in house prices over the past 12 months. This rise places Nairobi among the world’s top cities for property price growth, alongside metropolises like Manila, Mumbai, and Los Angeles. Globally, house prices increased by 2.6% in the year leading up to June 2024, a slowdown from the 4.2% growth seen in the previous quarter. The slower global growth is largely attributed to the rising interest rates that have dampened spending power across 44 major cities. However, Nairobi’s resilience amidst these global economic pressures highlights its growing appeal and the robust demand for housing in the city. Interest Rates and Their Impact: The rise in Nairobi’s house prices can be closely linked to changes in interest rates. After a sharp decline in housing markets in late 2022, the mid-2023 period marked the beginning of a recovery, driven by a decline in bank interest rates across various countries. For Nairobi, this shift played a crucial role in boosting the property market. On August 6, 2024, the Central Bank of Kenya (CBK) cut its base rate from 13% to 12.75%. This reduction in interest rates is expected to make borrowing more affordable for potential homebuyers and investors, thereby stimulating further growth in the housing market. CBK Governor Kamau Thugge highlighted the previous high lending rates as necessary to stabilize the Kenyan shilling and curb inflation. The strategy appears to have paid off, with inflation dropping from 8.1% in October 2023 to 4.3% in July 2024, according to the Kenya National Bureau of Statistics (KNBS). Global Comparisons: Nairobi’s impressive performance in the real estate market is part of a broader global trend. Manila, Philippines, topped the list with a staggering 26% annual increase in property prices, followed by Mumbai and Delhi in India, with price hikes of 13% and 10.6%, respectively. The United States also saw significant gains, with Los Angeles and Miami recording price increases of 8.9% and 7.1%. Despite the general slowdown in global price growth, experts like Liam Bailey, Knight Frank’s global head of research, suggest that the situation could improve with further interest rate cuts. “The biggest influence on future price growth lies in the hands of central banks and their confidence to cut rates further over the next 12 months,” Bailey noted in the report. Looking Ahead: As Nairobi continues to climb the global rankings, the city’s real estate market is poised for further growth. The recent interest rate cuts by the CBK are likely to fuel this trend, making it an opportune time for investors and homebuyers to explore opportunities in Nairobi’s property market. For those considering entering the market, understanding these economic dynamics is crucial. With Nairobi now firmly established as a key player in the global real estate scene, the city offers both challenges and opportunities for those looking to invest in one of Africa’s most vibrant and rapidly growing urban centers. Nairobi’s real estate market is on an upward trajectory, driven by a combination of local and global factors. The city’s rising house prices, buoyed by favorable interest rates and strong demand, have positioned it as a top destination for property investment. As Nairobi continues to grow and evolve, its real estate market is set to offer even more exciting prospects for investors and homeowners alike

As construction costs in Kenya continue to rise, the demand for affordable housing solutions is increasing. Prefabricated houses, commonly known as prefabs, are emerging as a viable option for homeowners seeking faster, cost-effective, and sustainable building alternatives. While this technology has gained widespread acceptance in developed countries, Kenya is gradually catching on to the benefits of prefabricated housing. Understanding Prefab Technology Prefabricated homes are constructed in a factory setting, where the components are built and then transported to the site for assembly. This process helps reduce costs, prevent material wastage, and speed up construction times, allowing homes to be completed regardless of adverse weather conditions. One of the key advantages of prefab houses is the ability to cut costs without compromising quality. With construction work largely taking place indoors, delays caused by rain or other weather conditions are avoided. Prefab technology is quickly becoming a solution to the high construction costs plaguing the industry, but it still faces a challenge—many Kenyans remain unfamiliar with how it works. Prefab Construction: A Step-by-Step Guide Building a prefabricated house follows a streamlined, efficient process that starts with the homeowner acquiring a plot and securing the necessary approvals. Once this is in place, the following steps are involved: Floor Assembly: Construction begins with the floor structure. A wood frame is placed under the floor to support the wall panels that will later be installed. Wall Panels Installation: Pre-insulated wall panels are attached to the floor frame with bolts and nuts. Windows and door openings are created in the panels before attachment. Wiring and Plumbing: After the structure is in place, electricians and plumbers install the necessary systems. Drywall, ceilings, and interior fixtures are also added. Roofing: Depending on the design, the roof can be installed either at the factory or after the house is assembled on-site. Finishes: Both interior and exterior finishes are completed, including cabinets, vanities, siding, and painting. Transportation: The house is transported in modules to the plot, and careful planning of the transportation route is required to avoid obstacles like power lines or narrow roads. Installation: Once on-site, the modules are checked for any damage and then assembled. Special attention is given to the “marriage walls,” which bind the structure together. Staircases, decks, and other features are then added, and the entire installation can be completed in a single day. EPS Panels: A Game-Changer for Affordable Housing To further promote affordable housing, Kenya’s National Housing Corporation (NHC) is advocating for the use of expanded polystyrene (EPS) panels. These panels, made from polystyrene, offer a strong, lightweight alternative to conventional stones and can reduce construction costs by up to 30%. Manufactured at NHC’s factory in Mavoko, Machakos County, EPS panels are becoming a key component in Kenya’s effort to meet the growing demand for affordable homes. Each panel costs approximately KSh 5,000, translating to KSh 1,111 per square meter. Despite the additional costs of transportation and concrete plasterwork, EPS panels are seen as a cost-effective solution to the housing shortage. The Future of Housing in Kenya As prefab technology and EPS panels gain traction, there is hope that these innovations will play a pivotal role in addressing Kenya’s housing crisis. While educating the public about these technologies remains a hurdle, the advantages of affordability, efficiency, and durability could make prefabricated housing the future of construction in Kenya.  

The Kenyan real estate market is undergoing a transformative shift, with an increasing focus on the customization of house interiors. This trend reflects a broader desire for unique, personalized living experiences that align with individual lifestyles and preferences. As people seek to create spaces that are true reflections of their identities, the demand for customized interiors is rapidly gaining momentum. Consider the examples of Steve and Cynthia, two homeowners with similar properties but vastly different needs. Steve, a family man, requires a three-bedroom unit that serves the traditional purposes: a living room, kitchen, and bedrooms for his wife and two children. Cynthia, on the other hand, is a remote worker living alone. She envisions her three-bedroom unit differently—transforming one room into a home office, another into a spacious closet, and retaining the third as her bedroom. These distinct approaches highlight the versatility of customization, where the same floor plan can be adapted to meet diverse needs. Customization extends beyond just altering the function of rooms. It also involves tailoring finishes, selecting bespoke fixtures, and integrating smart home technologies that resonate with the homeowner’s personality and lifestyle. Whether it’s creating a dedicated gym room, a cozy home theater, or a tranquil study, the possibilities are endless. This trend is particularly appealing in a market where people are looking for more than just a place to live—they seek a space that enhances their quality of life. The rise of customization in the Kenyan real estate sector signifies a broader shift towards a more personalized approach to homeownership. It’s not just about owning property; it’s about creating a space that truly feels like home. Developers and interior designers are increasingly catering to this demand, offering flexible layouts and a wide range of customization options to suit the varied tastes and preferences of modern homeowners. As this trend continues to evolve, it is redefining the concept of home in Kenya. It’s not just about the structure or location anymore—it’s about the experience. Whether you’re an investor, homeowner, or someone exploring the property market, customization is a trend that opens up new horizons, offering limitless possibilities for creating living spaces that are as unique as the people who inhabit them. In this dynamic real estate landscape, the future is being shaped by those who dare to reimagine what a home can be. Customization is not merely a trend; it’s a reflection of our evolving aspirations and a testament to the endless potential of the spaces we call home

The Kenyan real estate market has seen a significant shift towards the development of apartment complexes, overshadowing the traditional preference for standalone houses and villas. This trend is largely driven by the rapid urbanization resulting from rural-to-urban migration, which has led to a growing demand for residential spaces in major cities. As more people flock to urban centers in search of better opportunities, the need to maximize available space has become paramount, making apartment complexes the preferred choice for both developers and residents. Space Optimization and Cost Efficiency One of the key advantages of apartment complexes is the efficient use of space. Unlike standalone houses that occupy more land per unit, apartment buildings can house multiple families within a single structure, making them ideal for accommodating the growing urban population. This maximization of space not only addresses the housing demand but also allows developers to offer more affordable housing options in prime urban locations. In addition to space optimization, apartment complexes often provide shared amenities, such as gyms, swimming pools, and recreational areas, which are cost-effective for tenants. By pooling resources, residents can enjoy these facilities without bearing the full cost individually, making apartment living a more economically viable option. This consolidation of amenities is particularly appealing in a market where the cost of living is steadily rising. Sustainability and Environmental Considerations Modern apartment complexes in Kenya are increasingly being designed with sustainability in mind. Developers are adopting environmentally friendly construction practices and materials, and many are incorporating sustainable energy sources like solar water heating. This focus on sustainability not only reduces the environmental footprint of these developments but also lowers utility costs for residents, making apartment living more attractive. Furthermore, the shared nature of amenities in apartment complexes often leads to more efficient use of resources, contributing to environmental conservation. For instance, communal waste management systems, energy-efficient lighting, and water-saving technologies are more feasible in apartment complexes, further enhancing their appeal to environmentally conscious consumers. Investment Opportunities and Economic Viability For investors, apartment complexes offer a lucrative opportunity. These units can be let out for both short-term and long-term stays, providing a steady income stream. The average market return on investment (ROI) for apartment units in Kenya ranges from 6% to 8%, with the potential to reach up to 16% for furnished units. This high ROI has fueled the demand for studio and one-bedroom apartments, particularly in Nairobi, where they are increasingly being used as Airbnb units. The growing popularity of short-term rentals, especially through platforms like Airbnb, has made investing in apartments an attractive proposition. Investors can capitalize on the tourism and business travel markets by offering well-furnished, conveniently located apartments for short-term stays, significantly boosting their returns. The shift towards apartment complexes in Kenya is a reflection of the changing dynamics of urban living. As cities continue to expand and the demand for housing rises, the practicality, cost-effectiveness, and sustainability of apartment living are becoming more apparent. For developers, investors, and residents alike, apartment complexes represent a smart, future-forward approach to addressing the housing needs of Kenya’s growing urban population. As this trend continues, it is likely that apartment living will become the norm in Kenyan cities, offering a blend of convenience, affordability, and modern living standards.

Following the signing of a land agreement with Konza Technopolis Development Authority, the National Housing Corporation is set to build 5,000 homes at Konza City in Machakos County. Konza City, which is a slowly developing technology city in Machakos county will experience a major milestone and will greatly benefit from the construction of the affordable housing. Apart from Machakos county, NHC has also signed deals with other counties including Laikipia, Murang’a, and Kiambu to construct affordable housing in the respective counties. In Kiambu for instance, the state corporation has signed a deal that will see the construction of 2,000 affordable homes in various parts of the county. In Ruiru, the project is expected to deliver 500 units by the end of the year. This will be the first batch. The remaining 1,500 are expected to come up in Kiambu town, Thika, Migaa and other areas. To cut construction cost, the NHC highly relies on EPS, new technologies, which according to the state company, can save up to 30 per cent on total building costs while reducing the construction period by up to 50 per cent. The construction will be done in phases, phase one of the Konza Technopolis Urban Residential Housing involves construction of 100 units within the proposed technology city. The project will cost Ksh400 million. Since the country has been experiencing growth in local and international investors with interest in the development of affordable housing, the project could gain funding from the investors. The investors include UK Climate Investments (UKCI) and FSD Africa Investments (FSDAI) who confirmed a Ksh5 billion funding commitment to a local green affordable scheme. The venture has so far received 100 per cent of its targeted Ksh9 billion investor backing for the first close making the locally managed fund operational this year. The targeted 10,000 housing units using green housing technologies will provide affordable ownership and rental opportunities with 100 per cent ownership at an average price of Ksh4.5 million and rentals ranging from Ksh15,000 to Ksh50,000 a month

Pan-African housing development financier, Shelter Afrique has been elevated into a development bank in a historic move that promises to reshape the landscape of African housing and urban development. This follows the approval by its shareholders during the Extraordinary General Meeting (EGM) in Algiers, Algeria between 4th -5th of October. The renaming of Shelter Afrique, according to a statement, “solidifies its status as a transformative and sustainable development bank” that is completely committed to developing urban housing and related infrastructure development throughout Africa. The transition will be visible, according to managing director Thierno-Habib Hann, through greater housing unit finance and construction as well as better access to decent, sustainable, and affordable housing. The bank said that the change will also bring it into compliance with international norms and put it in the forefront of financiers for the housing sector. “This will also place us at par with peer Development Finance institutions (DFIs),” the company stated. Some of the key highlights of the financier’s transformation are as follows; International Alignment The new Agreement aligns the Bank to international standards granting the institution a leading position among housing sector financiers and placing it at par with peer Development Finance institutions (DFIs). The diversification of the shareholding and Board composition into Class A (African States), Class B (African Institutions) and Class C (International and Private sector) will ensure financial sustainability and best-in-class Corporate Governance. Enhance Housing Development Impact and Shareholder Value The Bank will generate and maintain robust positive financial returns by posting and monitoring key performance indicators on liquidity, profitability, asset quality, efficiency, and productivity. ShafDB’s strategic vision is also to expand its portfolio offering to include thematic areas across the housing value-chain, such as Green/Climate/Resilience, Gender, Jobs (SMEs/Trade), Trunk Infrastructure, Islamic finance, IDPs (Migrants/Refugees), and Diaspora. This will be achieved via specialized funds in the Asset Management business. Improve Organizational Sustainability The repositioning of ShafDB through the revision of its Statutes will further strengthen its adherence to the highest standards of Corporate Governance and align the Bank’s structures to international frameworks and best practices. The inclusion of an Advisory Board composed of representatives of the Ministry of Finance and international experts will strengthen the strategic and financial management capabilities of the Bank. Generally, the core mandates include delivery of financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain focusing on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships. Shelter-Afrique Development Bank (ShafDB) is a Pan-African institution solely dedicated to financing and promoting housing, urban & related infrastructure development across the African continent. ShafDB operates through a partnership involving 44 African Governments, as well as the African Development Bank (AfDB) and the Africa Reinsurance Corporation (Africa-Re). It delivers financial solutions and associated services that support both the supply and demand aspects of the affordable housing value chain. As a premier provider of financial, advisory, and research solutions, ShafDB focuses on addressing Africa’s housing crisis through financial institutions, project finance and public-private partnerships, striving to achieve sustainable developmental impact.