The International Finance Company (IFC) has entered into a deal with Belco Reality LLP for the development of 1,379 affordable housing units in Kongowea, Mombasa County.
Under the deal, the multilateral lender will mobilize up to $12 million (Kshs. 1.3B) in equity from suitable international strategic partners to invest in the project while offering the firm necessary technical support.
“Affordable Housing offers a unique opportunity to positively impact while communities whilst attaining the highest standards of sustainability to help push cities towards a circular economy. Our partnership with the IFC highlights a mutual understanding of the power of scale to drive change an a commitment to surpass accepted norms,” said Vijay Patel, Belco Reality Managing Partner.
Besides the residential units, Belco will also develop at least 4,500sq of retail and commercial space as part of the Kongowea Village project.
“Access to quality housing is a growing problem in Kenya and across Africa. Developers often target the high end of the market but this project is aimed squarely at the lower-income bracket. Helping Belco identify the right partners for this project is expected to attract more developers to Kenya and other parts of Africa to help meet rising demand for housing,” said Jumoke Jagun-Dokunmu, IF Regional Director for East Africa.
The firm says the development is expected to create 1,160 jobs and business opportunities during the three-year construction period and many more after completion of the project within the themed retail arcade.
“IFC’s engagement with Belco will help Kenya support its rapidly growing and urbanizing population by increasing access to affordable housing. The problem is similar across most of Africa, where population growth and demand for quality housing are combining to outstrip supply. The project aims for the IFC Edge certification and will incorporate the latest technologies in passive cooling, energy efficiency and water conservation to help absorb mass urbanization sustainably. We are pleased to partner with a company such as Belco that is committed to contributing to solving this challenge,” said Emmanuel Nyirinkindi, IFC Director for Transaction Advisory Services.