Centum Real Estate (Centum RE), a subsidiary of the Nairobi Securities Exchange-listed Centum Investment Company Plc, has secured KES 2.6 billion in funding from the International Finance Corporation (IFC), the private lending arm of the World Bank Group to develop Affordable housing in Kenya.
The funds will be used to finance the construction of nearly 2,000 affordable homes at the prestigious Two Rivers Development in Nairobi.
This investment marks a major milestone for Kenya’s housing sector and is a significant endorsement of Centum RE’s expanding footprint in real estate. The company plans to build 1,940 homes within its Mizizi project, aimed at addressing the housing shortfall while promoting sustainable urban development.
“The facility allows Centum RE to take a long-term view and develop housing communities of scale in the region,” said Centum RE Managing Director Kenneth Mbae, noting the loan will be repaid over a period of seven years.
The homes are to be constructed in phases, with the first phase already well underway. According to the company, 600 units have been completed and sold. The project targets middle-income earners with prices ranging between KES 1.9 million and KES 10 million.
The properties are classified as greenhouses energy-efficient units that cut down consumption by over 30% in water, electricity, and materials. Designed with natural lighting and cooling in mind, the homes are expected to deliver an enhanced quality of life to their residents.
“The homes are cleverly and intentionally designed to allow for adequate natural lighting and cooling,” Mbae added.
Located within the Two Rivers precinct a prime mixed-use development next to Kenya’s Diplomatic Blue Zone the new homes are part of a broader push to offer accessible housing options while addressing urban sprawl and environmental challenges.
IFC’s decision to back Centum RE is seen as a broader signal of confidence in Kenya’s real estate sector and a move to promote sustainable housing across Sub-Saharan Africa. With over 8,000 acres of prime land under its portfolio, Centum RE is positioning itself as a dominant player in the urban and peri-urban housing market.
“IFC is an aspirational partner to many businesses. We believe success attracts more success and other institutions will keen to partner with Centum RE,” said Mbae.
In 2023, Centum RE issued a KES 3 billion bond to finance various housing projects, a move that showcased its ability to raise and repay capital from the local debt markets. The new funding from IFC builds upon that momentum.
“Centum RE is now a dominant homes brand with a solid track record of raising and repaying capital, coupled with a demonstrable reputation of building mixed-use communities in Kenya and Uganda,” Mbae said.
Centum RE’s approach to real estate development relies heavily on pre-selling units before construction begins a strategy aimed at reducing financial risk and validating demand before capital is deployed. According to Mbae, this model has been instrumental in building investor confidence.
With the IFC backing, Centum RE is now looking to attract further investment into its initiatives to provide affordable housing in Kenya. The company believes that international institutional partnerships such as this not only unlock access to capital but also set new benchmarks for governance, sustainability, and impact.
Kenya faces an estimated annual shortfall of 200,000 housing units, driven by rapid urbanisation and population growth. Affordable housing remains a top priority for the government under its national housing agenda.
Centum RE’s Mizizi project, with its focus on affordability and sustainability, is aligned with the country’s broader goal to provide quality housing to underserved populations. With a track record of delivering large-scale developments and a land bank spread across East Africa, the firm appears well-placed to contribute significantly to solving the region’s housing deficit.
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