Financial sector players have agreed to support the Government’s Affordable Housing Plan and other major infrastructure projects including industrial parks with a Ksh500 Billion investment in the first year.
The investment will progressively grow to a total of Ksh1 trillion in the fifth year.
The deal, which was reached in a meeting chaired by President William Ruto at State House, Nairobi, on Monday, October 24, 2022, brings together the pensions industry, insurance firms, Saccos, cooperatives and Islamic finance institutions.
Referred to as the Sanduku Investment Initiative, its priority projects will include the Railway City Development, Nairobi International Financial Centre, Kenani Leather Park, and Makongeni Modern Suburb among other public-private partnership projects.
Further, the meeting agreed to use a structure agreed on by the Capital Markets Authority and Nairobi Securities Exchange (NSE) to facilitate investment-grade instruments to be listed on the NSE.
“This means small entrepreneurs like Mama Mboga will have a chance to invest under a real estate investment trust,” said the President.
Under the affordable housing project, the government plans to deliver 200,000 housing units annually.
The plan will however heavily rely on counties’ backing and the private sector.
