Mortgage lender Housing Finance is putting up a multi-million housing project in Nairobi’s Eastlands area aimed at low and middle income earners.
Dubbed Komarock Phase 5A, the development involves construction of 162 homes and a commercial centre on 13.5 acres of prime land in Komarock estate – about 15 km from the city centre.
The Sh800 million project, which has a build time of 80 weeks, is a joint venture between Housing Finance and the National Housing Corporation where the former will market and sell the houses while the latter will provide technical expertise.
According to Housing Finance managing director Frank Ireri, the mortgage lender intends to raise its involvement in the construction of low and middle income housing in effort to increase its mortgage lending opportunities.
“We want to raise our involvement on the supply side of the low and middle income housing, which will subsequently create significant mortgage lending opportunities for us,” Mr Ireri said.
HF said it will sell the Komarock 5A units for at least Sh6.8 million on completion, a figure that is 15 per cent below the market value, in a bid to attract low and middle income earners currently faced with high credit costs.
The firm is planning to use its recently revived construction subsidiary, Kenya Building Society, to set up similar estates around the country as the county system of governance begins to operate.
“We have more land that we intend to develop, but we are also looking to partner with land owners to put up homes to meet the rising demand, particularly from low and middle income earners in the country,” Mr Ireri said.
HF developed the current phases of Komarock estate, Buruburu and Mombasa’s Fahari estate in the 1970s – injecting more than 5,000 units in the local housing market.