The State Department of Housing and Urban Development and Gulf Cap Africa Limited have signed a Sh13 billion deal to build 6,704 affordable housing units in Starehe, Nairobi County.

The deal will be in five phases over 36 months making it the biggest Affordable Housing project done by Lands, Public Works, Housing and Urban Development Ministry this year.

Housing Cabinet Secretary Zacharia Mwangi Njeru says the project launched by President William Ruto is being effected in line with the government’s goal to achieve the development of 200,000 housing units annually.

Njeru says the project will provide affordable, inclusive homes for Kenyans while stimulating local growth through creating jobs for the youth and women in the construction sector.

Zacharia Njeru, William Ruto, Rigathi gachagua and Charles Hinga. PHOTO/PCS

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“We estimate that close to Sh500 million of the project value will go towards creating value for the local MSMEs - with at least 50 per cent going towards women,” said Njeru.

He added, “In addition, the project will generate over 10,000 direct and indirect jobs, providing much needed income for our youth.”

The proposed affordable housing development by the investment firm will consist of 2,000 social housing units and 4,704 one-bedroom, two-bedroom, and three-bedroom units.


The project will also see social amenities including swimming pools, food courts, green spaces, LPG and ICT connectivity realized as well as cabro-paved driveways among others.

“Part of the partnership will be the transformation of Starehe and its environs, including the upgrading of the Ziwani dispensary and local schools.

“This underlines our firm commitment, as a Ministry, to elevate people’s living standards and livelihoods by providing affordable, safe, sustainable and dignified communities.”

William Ruto and Suleiman Shahbal. PHOTO/PCS

Housing PS Charles Hinga says the 2,000 houses target lowest earners and will go for Sh1.155 million and two models of one-bedroom units will fetch Sh1.65 million and 1.980 million.

The two models of two-bedroom units will go for Sh2.2 million and Sh3.465 million while the different models of three-bedroom units will retail at Sh3.3 million and Sh4.1 million respectively.

He lauded the BuildHer group for its efforts to train and empower women in the construction industry saying construction women should be treated better going forward.


Speaking on behalf of Gulf Africa, Chairman Suleiman Shahbal stated that the Affordable Housing dream will be fully realised by leveraging the power of Public Private Partnerships.