20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Project outcomes for the Project include: Stakeholder effects: (i) Effects on consumers - The Project is expected to supply up to 1,940 affordable housing units within the investment period by a developer who is increasingly going down-market. The increase in access to quality housing at lower-priced points will help address the shortage of housing in Kenya and benefit families who currently cannot afford quality housing in the market; (ii) Effects on suppliers - With a larger scale of construction, there will be an increase in demand for building materials; (iii) Effects on local communities - those who live in the area will benefit from urban infrastructure such as roads, electricity, water and sanitation that were developed as a result of the Project. Economy-wide effects: The Project will create direct and indirect jobs through the construction of the housing projects. Local suppliers of building materials and other services will also benefit from the increased demand. The Government of Kenya may also benefit from higher tax payments from imports and company income. Environmental effects: Reaching efficiency in residential housing is an important step towards addressing climate change. Globally buildings account for 40% of GHG emissions and are an important consumer of energy. The Project is expected to improve energy efficiency, reducing GHG emissions. All developments will use EDGE standards requiring a minimum of 20% savings on water usage, energy usage, and embodied energy. The Project’s contribution to market creation includes: Competitiveness: The market for affordable housing in Kenya is underdeveloped. The limited provision of affordable housing is primarily driven by supply-side constraints due to: (i) high building costs and regulatory costs for approval processes; and (ii) limited access to finance for developers. The Project will demonstrate to other developers that good quality housing can be profitable and successful in a more affordable market segment, which could lead to more investments in the sector.

Financial additionality - Financing structure: IFC’s provision of long-term debt funding, which would otherwise not be available in the market from strictly commercial investors as the sector is considered highly risky. IFC’s involvement will also offer a “stamp of approval” to the Company and is expected to crowd in more investors to the affordable housing space in Kenya. Non-financial additionality - Knowledge innovation and capacity building: IFC will provide advice on green building standards as well as support for Excellence in Design for Greater Efficiencies (EDGE) certification. CRE will also benefit from IFC’s deep knowledge and expertise in housing, including tools such as Pillar Advisory as well as leveraging IFC network with key actors in the sub-sector.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability, as the proposed project is expected to have limited adverse environmental and social risks and impacts that are few in number and site-specific and can be avoided or mitigated by adhering to recognized performance standards, good international industry practices and guidelines as described in the following sections.

Key E&S risks and issues associated with this project will include: a) the company’s E&S management systems and staffing to manage construction and operation; b) assurance of fair, safe and healthy working conditions for staff and contractors during construction and operation; c) construction phase risks and impacts including that related to contractor management, OHS, and community safety; d) life and fire safety systems design of the proposed buildings; and e) stakeholder engagement and external grievance mechanism.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.