(Ecofin Agency) - The International Finance Corporation (IFC) has today announced a partnership with Belco Realty LLP to support the development of a mixed-use affordable living complex consisting of 1,379 residential units and over 4,500 square meters of retail and commercial space in Kongowea, Mombasa county. In the quest to meet the rising demand for housing, IFC will help identify international strategic investors to invest equity of up to $12 million and as well provide Belco with the necessary technical support to develop the project.

This partnership is the development finance institution’s broader strategy to support access to affordable housing in Kenya. Also, the project will be developed to meet IFC EDGE’s (Excellence in Design for Greater Efficiencies) required certification and will incorporate the latest technologies in passive cooling, energy efficiency, and water conservation to support sustainable urbanization.

"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.  We are pleased to partner with a company such as Belco that is committed to contributing to solving this challenge," said Emmanuel Nyirinkindi, IFC's Director for Transaction Advisory Services.

According to the World’s Bank’s “Kenya Economic Update: Housing-Unavailable and Unaffordable” report, the country’s residential sector has reached a peak in demand with a nationwide housing deficit of 200,000 units annually and an accumulated deficit of over 2 million units. The report further estimated that 60% of Kenya’s urban families live in slums as they cannot afford better housing.

"Affordable Housing offers a unique investment opportunity to positively impact whole communities whilst attaining the highest standards of sustainability to help push cities towards a circular economy," said Vijay Patel, Managing Partner of Belco.

Solange Che