Sakaja Unveils Ambitious Plan for 60,000 Affordable Homes Across Nine Nairobi Estates
The Nairobi City County Government (NCCG) has launched a major Urban Renewal Programme, inviting bids for the design, financing, construction, and sale of affordable housing units. Anchored in the Nairobi Integrated Urban Development Master Plan (NIUPLAN), the initiative aims to redevelop old estates and expand the housing stock for both sale and rental purposes. The programme targets 60,000 units across nine estates: Bahati, Maringo, Jericho, Lumumba, Ziwani, Bondeni, Embakasi, Kariobangi North, Gigiri, and Woodley.
The projects will operate under a Joint Venture (JV) framework, where the government contributes land and developers provide financing and technical expertise. One of the flagship developments, Maringo Estate Phase II, will cover 10 hectares and feature low- and mid-rise housing, including 5,000 units with a mix of townhouses and apartments from five to sixteen levels. The unit pricing for affordable homes is capped at: KSh 4.25 million for three-bedroom, KSh 3.5 million for two-bedroom, and KSh 2.5 million for one-bedroom units. Social amenities such as ECDE facilities, commercial centers, and green spaces will also be included.
In contrast, Gigiri Estate will cater to upper-class housing, featuring four-bedroom duplexes, apartment blocks up to four levels, and a minimum of 10 units on 0.413 hectares, complemented by amenities such as a clubhouse, swimming pool, and landscaped gardens.
The Urban Renewal Programme aligns with Kenya’s Affordable Housing Policy under the Bottom-Up Economic Transformation Agenda (BETA). To enhance accessibility, the county has introduced several financing mechanisms including:
Affordable Housing Levy: 1.5% contribution from employees and employers, collected by KRA.
Reduced Deposit Requirement: 5% down payment for affordable units.
Tenant Purchase Scheme (TPS): Converts rent into ownership over time.
Mortgage Support via KMRC: Long-term mortgages at single-digit interest rates.
Rural Housing Loans: Up to KSh 4 million at 3% interest over 25 years.
Governor Johnson Sakaja emphasized that the phased approach aims to minimize displacement while significantly increasing access to affordable housing, stimulating private sector investment, and promoting inclusive urban development in Nairobi.