KCB Bank Kenya has joined hands with International Housing Solutions (IHS) in a partnership aimed at boosting the development of affordable housing in Kenya. The collaboration, unveiled at the IHS Tilisi Development PLC project site in Limuru, Kiambu County, marks a significant milestone in addressing Kenya’s housing deficit and advancing the country’s Affordable Housing Program.
Through this partnership, KCB Bank will offer debt financing to IHS Kenya to support the construction of high-quality, sustainable, and affordable homes. Additionally, the bank will provide end-user mortgage financing to help homebuyers access affordable housing units with flexible and tailored loan products.
Driving Affordable Housing Growth through Finance and Development Expertise
IHS, a real estate fund manager specializing in green and affordable housing across Africa, will deliver over 3,000 housing units in Kenya over the next five years. These units, valued at approximately KShs. 10 billion, will be developed through the IHS Fund. The homes are designed to meet international sustainability standards, including IFC’s EDGE certification, promoting energy efficiency and reducing long-term costs for homeowners.
Read: KCB Bank, Bank of Kigali Launch PAPSS
Speaking during the launch, Caroline Wanjeri Kihara, Director Mortgage Business at KCB Bank, emphasized the bank’s commitment to expanding homeownership opportunities.
“KCB believes that homeownership is a key pillar of economic and social progress. By combining our financial strength with IHS’s development expertise, we are unlocking new opportunities for individuals and families to achieve their dream of homeownership.” she said.
A Move towards Bridging Kenya’s Housing Gap
Kenya currently faces a housing deficit of over 2 million units, especially in urban centers such as Nairobi. The government aims to construct 250,000 affordable housing units annually under its Big Four Agenda. The KCB Bank affordable housing initiative, in collaboration with IHS affordable housing projects, aligns with this national vision by targeting middle- and low-income earners, particularly those in the “missing middle” income bracket who often lack access to conventional home financing.
This partnership leverages the strengths of both entities:
- KCB Bank brings its vast financial network and capacity to offer mortgage financing with competitive interest rates and flexible repayment terms.
- IHS contributes its extensive experience in building sustainable communities and managing large-scale affordable housing developments across the continent.
Read: How to Benefit from the KCB Bank and Airtel Money Merchants Payments Deal
Economic, Social, and Environmental Impact
The KCB Bank-IHS affordable housing partnership is expected to create thousands of jobs in construction, real estate, and supporting sectors. It also promotes holistic community development, with access to essential infrastructure such as schools, healthcare facilities, retail spaces, and transport systems.
Furthermore, this collaboration supports Kenya’s public-private partnership (PPP) model, which aims to involve the private sector in solving national challenges. The initiative may also benefit from complementary funding by global financial institutions. IHS Kenya has previously received support from the International Finance Corporation (IFC) and the European Investment Bank (EIB)—including a $20.7 million investment from IFC in 2023 and a €36 million equity stake from EIB in 2021, further enhancing the scope and impact of their projects.