Nairobi: The County Government of Nakuru and the Shelter Afrique Development Bank (ShafDB) are collaborating to accelerate the development of affordable housing, revitalize aging urban estates, and foster climate-resilient urban development.
According to Kenya News Agency, the partnership will focus on establishing policy frameworks, conducting municipal diagnostics, preparing joint proposals, and initiating site visits to county estates earmarked for revitalization. County Executive Committee Member for Lands, Physical Planning, Housing and Urban Development, John Kihagi, highlighted that the collaboration aims to support project preparation, financing, construction, and attract private and institutional investment in Nakuru’s expanding urban centers.
Kihagi emphasized the prioritization of public land as a crucial resource for investment in affordable housing and urban development. The county seeks to regenerate aging public housing estates and promote brownfield and infill development, optimizing land use in existing urban areas. Governor Susan Kihika’s administration is developing a Housing Policy to guide investment, partnerships, estate regeneration, and sustainable housing development.
City and municipal boards are expected to play a central role in housing delivery, ensuring projects meet local urban needs. The proposed partnership aligns with the National Government’s Bottom-Up Economic Transformation Agenda (BETA), which prioritizes Housing and Settlement among its five key areas. BETA targets the annual supply of 250,000 housing units to address Kenya’s housing deficit and expand access to affordable homes.
Kihagi noted the Government’s positioning of affordable housing as an economic intervention capable of generating employment across construction, manufacturing, and related sectors. The Fourth Medium Term Plan 2023-2027 aims to provide 60,000 affordable housing units through budget support and 140,000 units annually via the National Housing Development Fund, also targeting one million affordable home-financing mortgages during this period.
The Kenya National Bureau of Statistics (KNBS) 2023/24 Kenya Housing Survey reported a significant shortage of habitable housing space. The survey emphasizes affordable housing’s role in supporting healthier communities and economic opportunities. The housing challenge is particularly pronounced in urban areas, where rapid population growth increases demand for affordable and adequately serviced homes. KNBS estimates Kenya’s annual housing demand at about 250,000 units, against an annual production of 50,000 units, resulting in a shortfall of roughly 200,000 homes.
The national housing program aims to increase affordable home supply while creating employment opportunities for young people and supporting local construction enterprises. According to the Government Delivery Unit, over 260,000 affordable housing units were under construction in 2025, creating more than 640,000 construction-sector jobs.
Kihagi observed that the ShafDB partnership will complement the national housing program by connecting county land and planning capacity with development finance, technical expertise, and private-sector investment. ShafDB presented its municipal toolkit and VIRAL diagnostic framework during the engagement to support municipalities in assessing housing needs, land management, institutional capacity, regulations, financing, and project development.
The collaboration will encompass the entire housing development cycle, starting with policy formulation and municipal diagnostics, followed by project preparation, financing, and construction. Nakuru County and ShafDB agreed to prepare a joint proposal and establish a technical team to advance the cooperation, with site visits planned for existing county housing estates and priority locations to identify opportunities for regeneration and new projects.
Kihagi noted that the collaboration reflects a broader African housing challenge, with Shelter Afrique estimating a 56 million unit shortage across Africa, primarily in the affordable housing segment. The World Bank also reports a large proportion of Kenya’s urban population living in informal settlements, underscoring the need for increased investment in affordable housing.
The challenge extends beyond Kenya, with the United Nations projecting rapid urban population growth in Africa, increasing demand for housing, infrastructure, transport, water, and sanitation. The African Development Bank identifies rapid urbanization, population growth, limited housing finance, land-tenure challenges, and high development costs as factors constraining affordable housing delivery across the continent.
ShafDB’s role in housing finance is growing, with loan disbursements increasing by 162 percent to Sh8.15 million Kenya shillings in 2025, compared to Sh3.1 million in 2024. The Nakuru partnership situates the county within a broader effort to mobilize development finance for urban housing.
For Nakuru, the focus will be on unlocking public land, renewing aging estates, and creating sustainable housing developments to accommodate its growing urban population. The county delegation included Naivasha Municipal Manager Daniel Nderitu and County Director of Housing Stephen Mucheru, while ShafDB was represented by Head of Project Finance Group Monsurat Muhammed, Dr. Gambo, and Investment Officer Lawrence Kiarie. The partnership is expected to move to the technical stage through a joint proposal and assessment of potential project sites.
