Visiting a Groundbreaking Affordable Housing Project in Nairobi, Kenya

Visiting a Groundbreaking Affordable Housing Project in Nairobi, Kenya

By Cindy Campbell, Director of PD&R's International and Philanthropic Affairs Division

I recently attended the Open Ended Intergovernmental Expert Working Group on Adequate Housing for All, held from December 9 to 11, 2024, at the United Nations Human Settlements Programme (UN-Habitat) headquarters in Nairobi, Kenya. The goal of this intensive conference was to establish benchmarks for the next few years toward realizing the working group's goals. The attendees represented nations worldwide and included representatives from HUD's international ministerial counterparts. HUD acts a technical advisor on housing and urban development issues to the U.S. Department of State's U.S. Mission to the United Nations, assisting these representatives in negotiating technical resolutions concerning housing and urban development.  

The robust meeting was an opportunity to share best practices and learn strategies other countries are using to address the global housing crisis. During the meeting, our delegation took a field trip to the Mukuru Affordable Housing Project, a government initiative to build Kenya's affordable housing stock.

More than 2.5 million Kenyans live in informal settlements. The Nairobi metropolitan area has a population of more than 5 million, 60 percent of whom live in informal housing settlements. One of these, Kibera, is among the largest informal housing settlements in the world, with more than 250,000 people living in makeshift housing built from found items such as sheet metal, wood scraps, and tarps. These informal settlements mostly lack running water and sanitation.

The Kenyan government has enacted an aggressive homebuilding program funded mostly through a 1.5 percent payroll tax for individuals and a 1.5 percent tax for employers. The government's goal is to build 250,000 affordable housing units annually.

Currently, the Mukuru Affordable Housing Project is Kenya's largest construction project, with 3,000 workers employed to build this development alone. Once completed, the 56-acre project will feature 5,616 bedsitters (efficiency apartments) in 26 blocks, 3,024 one-bedroom units in 14 blocks, and 4,608 two-bedroom units in 48 blocks, totaling 13,248 units.

Most of the units are rent to own, with prices ranging from 3,000 Kenyan shillings (approximately US$23) per month for a bedsitter to 5,000 Kenyan shillings (US$26) per month for a two-bedroom unit — affordable for Kenyans, who earn an average of approximately $590 per month as of June 2023. The units in the rent-to-own program will have a mortgage term of 20 to 30 years depending on income. Some of the apartments are social housing and will remain rentals. The government will also subsidize the cost of utilities such as water and electricity. During the tour, the construction manager told me that each bedsitter unit, which is 20 square meters (215 square feet), costs approximately 600,000 Kenyan shillings (US$4,700) to build. The units are small, at 30 square meters (322 square feet) for a two-room unit and 40 square meters (430 square feet) for a three-room unit, but the design gives the units a spacious feel. Each unit contains a small kitchenette. 

Delegation members asked several questions during our tour, including one about how the government will be able to maintain the buildings while charging such low rents. The answer was that the government would continue to subsidize the project and ensure that the apartments are well maintained. All towers must have a generator, which is in a separate building located next to each tower. Because electrical service can sometimes be inconsistent in Kenya, all towers must maintain a backup system for safety. 

The government will also provide social services to help residents transition from informal to formal settlement living, because moving can be difficult even if your current home is substandard. Moving from the informal settlements means not only letting go of the community, family, and connections rooted there but also giving up the small businesses many run in the settlements and the livelihood, however meager, they provide. The government hopes that the entire informal community will move together, ensuring the continuity of family and friend connections as well as small business opportunities.

One surprising aspect of this project is the segregation of towers by apartment type; one tower consists of bedsitter units, one tower contains only one-bedroom units, and one has only two-bedroom units, although future towers will contain a mix of unit types. I was particularly happy to see that each tower has a central interior courtyard that permits excellent circulation of fresh air into the apartments. The courtyard also offers residents a space for community gatherings and connection. Nairobi's temperate climate makes air conditioning unnecessary as long as the units have proper ventilation.  

The 56-acre complex will include numerous public services, including social services, schools, childcare facilities, fire departments, police substations, and retail. The property will also feature plenty of green space and recreational areas for youth. 

Touring the complex was a great opportunity to see such an amazing housing project that will help many!