HF Group set to build 1,272 housing units in Nairobi city

ntegrated property and financial solution provider HF Group (Formerly Housing Finance Company), through its subsidiary HF Development and Investment Limited (HFDI), is set to construct 1,272 housing units in Nairobi’s Komarock area. The project, christened Komarock 5C, is the second largest housing project — after Nyayo Estate, Embakasi — to be undertaken in Nairobi in the last 10 years.

“It will consist of two-bedroom units that will sell at Sh5.75 million and three-bedroom ones at Sh6.75 million on a 23.5-acre piece of land. Five acres of the land have been set aside for a private school,” said Steve Mainda, HF Group chairman. The project will be developed in three phases and construction will take two years per phase. It will also be HF Group’s largest housing project in over 30 thirty years.

According to Mr Mainda, HFDI (formerly Kenya Building Society) has in recent times intensified its involvement on the supply side of residential middle- and lower-income  housing. HFDI has developed estates like Buru Buru, Komarock Phase 5A and 5B, Precious Heights in Riruta Satellite and Kahawa Downs on Thika Road.

The housing supply strategy is projected to accelerate HF Group’s established presence as a major supplier of affordable housing and spearhead appropriate product development for the informal sector and middle- to low-income earners. The low- and middle-income class form a high proportion of the Kenyan population and the trend is not expected to slow down any time soon.

ALTERNATIVE TECHNOLOGIES

“Increase in population especially in the urban and peri-urban areas is pushing up the demand for housing units and hence more pressure on the supply of affordable housing units for its populace,” said Mr Mainda.

“Projects of scale are the only way to realistically address the housing deficit in Kenya, and matter of fact in all African countries,” said Mr James Mugerwa, the Managing Director of Shelter Afrique, the financiers of the project.

Shelter Afrique commended HF Group’s initiative and applauded the commencement of Komarock Heights Phase 5C construction. “Shelter Afrique approved Sh647 million in 2012, which has been fully disbursed for 155 units of the development,” said Mr Mugerwa.

In 2014, Sh930 million was approved with a tenure of two and a half  years and a grace period of 18 months to Housing Finance for Komarock Phase 5B. The company also earmarked Sh1.577 billion to HF Group for the projects, said Mr Mugerwa.

“We need projects that bring together all vested interests, which include the government, the private sector and financiers like ourselves, as they can really deliver  scale,” Mr Mugerwa stated. 

According to Mr Muinda, the ongoing Outering Road improvement project is expected to accelerate demand for  property along Kangundo Road.

“The infrastructure project will ease the movement of people, goods and services, as well as open up these parts of the city for business, improve security and encourage business growth,” explained Mr Muinda.

Speaking at the groundbreaking ceremony, President Uhuru Kenyatta urged to for a  change of attitude towards Alternative Building Technologies (ABT’s).

 “We have seen ABT’s used in other countries and I do not see the reason why such technology cannot be adopted in Kenya for the benefit of our people,” he said.