World Bank’s IFC in Kongowea cheap housing deal

World Bank’s private funding arm, the International Finance Corporation (IFC) has partnered Kenya’s real estate firm Belco Realty to develop affordable housing units in Kongowea, Mombasa.

Under the agreement which will see the construction of 1379 residential units and 4500 square meters of commercial and retail space, the IFC will seek strategic partners to invest Ksh.1.3 billion ($12 million) in Belco and provide technical assistance.

The development to be known as the Kongowea Village sits on an eight-acre parcel of land and is tipped to foster inclusive and affordable community living.

During construction, the project is expected to create 1,160 jobs during the three-year construction period.

“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. Our partnership with IFC highlights a mutual understanding of the power of scale to drive change and a commitment to surpassing accepted norms,” said Vijay Patel, Managing Partner of Belco.

IFC’s partnership with Belco is part of a wider strategy to support access to affordable housing in the country. Last year, the entity sunk Ksh.215.6 million ($2 million) in Equity in the Kenya Mortgage Refinancing Company (KMRC).

“Access to quality housing is a growing problem in Kenya and across Africa. Developers often target the high end of the market, but this project is aimed squarely at the lower-income bracket.

Helping Belco identify the right partners for this project is expected to attract more developers to Kenya and other parts of Africa to help meet rising demand for housing,” said Jumoke Jagun-Dokunmu, IFC’s Regional Director for Eastern Africa.