The European Investment Bank’s development arm, EIB Global, has committed €21.5 million in equity financing to the IHS Kenya Green Housing Fund, a move that is already showing tangible progress in Kenya’s green and affordable housing sector. The fund aims to construct and acquire energy-efficient homes tailored to the country’s low- and middle-income population.
Currently, three housing projects located in Tilisi, Garden City, and Mashiara Park in Nairobi are underway, providing a combined total of 664 residential units. The Garden City project, known as Muzi Stawi, is already 90% complete and is expected to be finished by October 2025. In total, the fund has a pipeline of over 2,600 additional units across Nairobi and Kiambu counties, significantly contributing to Kenya’s housing supply.
The demand for decent housing is immense, as over 7 million of Kenya’s 12 million households reside in urban areas, with the majority living in informal settlements, according to the Kenya Population and Housing Census. These conditions highlight the urgency of making affordable housing more accessible, especially as living costs and housing prices continue to climb.
EIB Global’s support goes beyond financial investment. It also provides technical assistance and advisory services to implement sustainable, climate-friendly urban housing projects. This holistic approach helps ensure that housing solutions are viable in the long term and aligned with development goals, such as reducing energy costs and improving urban living conditions.
The IHS Kenya Green Housing Fund focuses on green-certified affordable properties, particularly targeting under-served income segments. The Muzi Stawi apartments will be available for rent to the broader market. The Fund has attracted €83.4 million in total commitments, including contributions from other African and local investors, demonstrating strong regional confidence in the initiative.
IHS Kenya’s Managing Director, Kioi Wambaa, emphasized the organization’s commitment to transforming Kenya’s housing landscape. He stated that the goal is to deliver around 4,000 green affordable homes by 2030, combining quality and sustainability to redefine affordable housing. The Garden City development, he added, is a symbol of how modern living can be made more inclusive.
Despite national focus on affordable housing, only 2% of officially constructed housing units in Kenya are targeted at lower-income groups, according to a 2021 report by the Kenya Institute for Public Policy Research and Analysis. This underlines the critical role that initiatives like the IHS Kenya Fund play in addressing the country’s housing deficit.
Sustainable housing also contributes to climate action, as the real estate sector is responsible for approximately 30% of global greenhouse gas emissions, according to the United Nations Environment Programme (UNEP). The green housing model adopted by IHS not only supports affordable living but also aims to improve energy and water efficiency, aligning with the EIB’s climate goals.
EIB Global operates as part of the European Investment Bank Group and is tasked with enhancing development finance impact through partnerships under the EU’s Global Gateway initiative. It aims to support €100 billion in investment by 2027, collaborating with development institutions and civil society to deliver sustainable infrastructure globally, including in Africa.
