IFC is assisting the State Department of Urbanization and Housing (SDUH) and National Housing Corporation (NHC) to developing affordable houses, in response to a shortage in affordable housing. Kenya’ s population is young and urbanizing rapidly, putting strong pressure on housing needs. Three quarters of the total population, estimated at 45m, is below 35 years and the country has one of the fastest urban growth rates in the region in 2021 it recorded a growth of 4.3%. The Kenya Bureau of Statistics, in 2018, estimated that 61% of urban households live in slums (compared to 50% and 23% in Nigeria and South Africa respectively). This elevated rate is attributed to rapid urbanization leading to overcrowding and lack of access to basic services. Further in urban centers, 56% of the households (average size 4) live in one single-roomed houses while less than 19% own homes. Urban centers face a shortage of 200,000 housing units annually whereas only 50,000 new housing units are supplied annually, mainly by the private sector. In housing shortages, vulnerable groups like women, children, the elderly, and persons with disabilities are most at risk. The project will contribute to the newly elected Government's affordable housing goal and provide an opportunity to other counties in Kenya with similar affordable housing challenges develop a scalable housing product. IFC's advisory mandate is being rolled out in two phases: 1) Phase 1: the project preparation which entails a detailed due diligence covering legal, technical, environmental, and social, commercial, and financial aspects to develop a project structure; and 2) Phase 2, the tender phase where a private party will be procured to develop the project