IHS investment fund lines up 240 apartments for Sh1.2bn in Limuru
International Housing Solution Managing Director Capital and Investor Relations, Peter Mayavi address the media during the signing of a strategic financing agreement at Eldama park office in Nairobi on October 19, 2023.
Investment fund, International Housing Solutions (IHS) targets to expand its affordable housing footprint with a Sh1.2 billion investment in 240 apartments in Limuru, Kiambu County.
The US-owned Southern Africa managed IHS on Tuesday broke ground for the 240-apartment project in the Tilisi area of Limuru, as part of its strategy to develop affordable housing that incorporates green building practices.
The firm said that the development will comprise a mix of two and three-bedroom apartments through a project dubbed Muzi Salama within the Tilisi Masterplan development.
“Muzi Salama is designed to foster a sense of community by ensuring that the units are affordable, comfortable, and complemented by amenities that will give users quality urban living. We also chose to develop in Tilisi due to its strategic location which is served by major transportation nodes,” said Peter Mayavi, IHS Kenya managing director-capital and investor relations.
The units will retail from Sh 5.2 million and construction is expected to take 24 months.
Muzi Salama is IHS Kenya’s first development-for-sale project in Kenya. Earlier, IHS Kenya partnered with property developer Mi Vida to develop 200 rental housing units within the Garden City mixed-use masterplan along the Thika Road Superhighway. The funding for affordable green housing will be provided by the IHS Kenya Green Housing Fund.
The International Finance Corportation last year revealed it planned to invest $20.9million(Sh2.68billion) in IHS to aid in the development of 5,000 affordable houses in Kenya.
The IFC said its co-investment with IHS in the project would see it take up a maximum stake that does not exceed 20 percent in a fund set up to finance the affordable housing venture.
The proposed developments come at a time when the Government is proposing measures that will promote affordable housing.
In this year’s national budget, the Treasury is planning to increase the deductible interest payments on loans for residential construction or improvement, to Sh360,000 annually from Sh300,000 to incentivise homeownership and stimulate economic growth.
In this year’s budget, the government has also allocated Sh92.1 Billion for housing, urban development, and public works. Another Sh32.5 Billion has been allocated for the construction of affordable housing.
