Chinese firms bag US $7bn low-cost home project in Kenya

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The ministry of Housing and Urban Development in Kenya has awarded Chinese Wu Yi Company Limited, Sinohydro Corporation and China Roads and Bridges Corporation tender to build 1, 500 low-cost homes Nairobi’s Park Road.

According to the tender document published by the ministry, the developer is expected to build 400 units from the commencement date of the project. The developer will then be paid 20 per cent upon completion of the 400 units and 40% upon project completion and another 40% after defect liability period.

Sinohydro Limited and China Road and Bridge Corporation have in the past have partaken projects such as the SGR, Nairobi’s northern by pass and the Thika Super-Highway. This comes in effort to enhance public-private partnership (PPPs) as part of President Uhuru Kenyatta’s “Big Four” agenda that seeks to construct 500,000 low cost houses by 2022.

The Cabinet Secretary of Housing and Urban Development said that the use of free public land and the building of infrastructures such as power, roads, electricity and water have been catered for by the ministry.

Low cost housing

Nairobi will be the first county to benefit from the project with a start of the 1, 500 low-cost homes. The housing units will include 105 one-bedroom units, 540 two-bedroom units and 855 three-bedroom units on a 7.9 acre land that boarders Park road primary school and Muslim Academy.

To occupy the homes, home owners will be expected to pay atleast US $6000 to US $30,000. The taxpayers are also expected to finance the cost of designing, and sourcing for cheaper building technology. Total cost of the 5 year project involving 800, 000 units for sale and 200,000 social housing units in the slums amount to US $23bn.