The Kenya National Chamber of Commerce and Industry (KNCCI) and the Kenya Property Developers Association (KPDA) have today signed a Memorandum of Understanding for strategic collaboration in developing a practical framework for private sector participation in the Affordable Housing Program (AHP). The agreement inked today also seeks to address implementation bottlenecks hindering project delivery and champion and steward a pipeline of investable housing projects aligned to national priorities. From the cooperation the two organizations also aim is to mobilize private capital and innovation to complement government-led housing delivery.

Speaking during the signing ceremony Chamber President Dr. Erick Rutto urged the private sector to tackle the existing housing deficit as a challenge calling for investment in the real estate sector. He also took issue with the clouding out of Kenyan investors in the real estate market where large projects are involved calling for protectionist policies  to protect local investors.

“Indigenous companies are not participating in the real estate sector. There is a need for some critical sectors to be protected. Construction has been heavily affected by foreign competition,” Dr Erick Rutto, Chamber President.

Speaking at the same event KNCCI acting CEO K.K Mutai termed the agreement as timely and will unlock the lack of finance challenge faced by investors’ real estate sector especially involved in big projects including the affordable housing programme.

“Together, we shall form a joint taskforce, carry out socio-economic feasibility studies, and identify pilot projects that can be scaled up. These steps will ensure that private capital and innovation effectively complement government-led housing delivery. Together, we shall form a joint taskforce, carry out socio-economic feasibility studies, and identify pilot projects that can be scaled up. These steps will ensure that private capital and innovation effectively complement government-led housing delivery” said KK Mutai, Ag CEO KNCCI.

KPDA Chairman said the cooperation with KNCCI brings unparalleled reach, a powerful voice for policy reform, and deep connections across every sector of our economy while KPDA brings the technical expertise, the practical experience, and the on-the-ground challenges faced by property developers.

“First, it means a stronger, unified voice. We will speak with one coherent voice to government on the issues that matter: from streamlining approval processes, advocating for consistent policies, and creating a stable environment that attracts investment. We will move from fragmented requests to coordinated advocacy.”

He added that the partnership means unlocking innovation and investment with the collaboration set to open doors to new financing models, encourage public-private partnerships, and foster the innovation necessary to tackle our biggest challenges, particularly in affordable housing and sustainable urban development.

The cooperation has been lauded by the Affordable Housing Board Chairperson Jeremiah Ndambuki who says the partnership will increase the role played by the private sector in the programme. He added that the programme is realizing gains envisaged by the creators in eliminating unemployment among the youth with 300,000 youth absorbed and with a potential to employ one million.

”The affordable housing programme is creating consumptive demand with the volume of work also having led to the reduction of cost per unit approximately 20%. We are now buying over 70% of all inputs locally and we have engaged over 100 local contractors. It gives personal satisfaction to see the impact of the program,” He said.