affordable-housing | April 21, 2017

How to bridge Kenya’s housing gap

The team at


Kenya has a housing deficit of over two million units, and more than six in 10 urban Kenyans live in slums.

Its Vision 2030 Strategy calls for 200,000 new units per year, quadruple the current rate. Filling Kenya’s gap for affordable housing could spur the “housing multiplier effect”: economic growth, job creation, and a deepening of Kenya’s financial sector.

The World Bank’s suggestions: Community savings and credit cooperatives, or SACCOs, in which community members are both investors and loan recipients. Mortgage refinancing companies and guarantees to link long-term investors like pension funds with housing opportunities. Improved access to land, basic infrastructure, and paperwork such as mortgage registration and title transfers. Policy reforms are needed to create an environment conducive to mobilizing long-term domestic capital.

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Photo credit: Construction Business Review Kenya