New beginnings in Kenya
This year saw the beginning of a new partnership in Kenya and, with it, a new project to help 59 families secure land and develop housing in Nairobi.
We formed a partnership with the National Cooperative Housing Union (NACHU) in Kenya. Through NACHU, we are supporting a project that will provide secure land and housing for 59 families from Nairobi’s slums. These families are all members of housing cooperatives who work together to save money and address their needs for improved housing.
NACHU, based in Nairobi, supports members of the housing cooperatives to develop their skills and knowledge, for example through training on topics such as housing policy and regulations. Ultimately, through projects like this one, NACHU is able to help the cooperatives access the support and finance they need to improve their living conditions.
Through this project, NACHU has purchased four acres of land in Ruai, 20km from Nairobi city centre, and will help the 59 families to build secure and permanent housing. Reflecting the different income levels across the families, there will be two different types of houses to ensure that the development is affordable for all those concerned.
Built as basic starter units, the houses will provide families with somewhere safe and affordable to live. When they can afford to, families can make gradual improvements to their homes, such as extending floor areas and putting in window frames. Commercial premises being built on the site will also help to cross-subsidise the project. Through tax rebates on construction
costs, NACHU will also leverage subsidies from the central government, making the houses even more affordable.
Over the coming year we will begin a second project with NACHU, helping a further 52 families to build new homes in Ruiru, Nairobi.
This is the first project to receive funding through
our Africa Bond finance facility. Homeless International’s Africa Bond, which is financed by contributions from UK housing associations, provides low interest loans to our partners
for community-led housing and infrastructure projects. Such loans are essential when local banks can only lend at unaffordable rates.
In Kenya,
interest rates on bank loans are typically around 16%, compared to just 6% on loans issued through the Africa Bond.
11
annual review 2011
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