Inside Sh81.3b Nairobi County housing development plan

Houses demolished in Woodley estate by the Nairobi county government to pave the way for re-development of the houses, on November 19, 2024. [David Gichuru,Standard]

The Nairobi City County targets to develop 10,000 units in its Annual Development Plan for the financial year 2025/26.

The plan, which will cost the county sh81.3 billion, will see sh60 million allocated to housing and urban development programmes. A total of sh750 million has been budgeted for built environment and urban planning programme.

Housing and urban development falls in this category. Some sh417 million has been budgeted for urban planning compliance and enforcement and sh273 million for lands.

Apart from putting up new units, the county will also rehabilitate existing ones among them Harambee Estate. Some of these projects while being ongoing have stalled due to lack of enough allocations.

The 10,000 units will be spread across eight estates within the city and will be done in phases. This is an increase from the 3,392 units the county government set to be developed in the current financial year.  

Under housing and urban renewal, some of the projects slated for the 2025-26 financial year are the renovation of Kariokor offices and Harambee Estate even as the county blames a lack of funds for the stalled projects.

Huruma Estate will see renovations of 336 housing units, while Uhuru Estate will have 884 units renovated.

“Repainting, reroofing and general works have been done at Huruma, Uhuru and Harambee estates, with completion level at 82 per cent,” the plan states. “More than 1,300 housing units were repaired, thereby improving the habitability of the estates. Non-payment of the contractors has led to delayed completion of the projects.”

Under urban renewal, the plan states that redevelopment of county rental estates is at 45 per cent for Pangani, where it targets 1,652 units, while at Jevanjee, works are 55 per cent done, targeting 1,830 units.

The project falls under phase one of the plan. In phase two, the county government has picked seven developers for the redevelopment of six estates in a Joint Venture Agreement. These are Woodley, Kariobangi North, Bahati, Maringo, Ziwani and Jericho (lots 1 & 2).

“The target is to produce approximately 20,000 housing units. Former county tenants in Pangani and Jevanjee estates have been allocated their units, awaiting completion of the houses for occupation,” the plan says.

Among the challenges hindering the county government’s housing agenda, according to the plan, is population pressure due to rapid urbanisation. The county also does not have a legal maintenance policy as it also grapples with dwindling revenues from its rental units.

The 2025-26 plan proposes to allocate 10 per cent of rental revenue to renovations. The county also plans to pursue joint ventures to put up more affordable houses.

In the 2023-24 financial year, the county targeted to raise Sh605 million from rental units but only managed to collect Sh503 million.

This meant that the county government could not meet most of its annual development plans, including the renovation of 19 staff houses.

“There was no budgetary allocation,” the county explains in the plan.

The 2025-26 development plan has a projected resource gap of Sh39 billion, with the county projecting revenues of Sh42.31 billion over the period. Key to this is own source revenue, where rental income falls. The county targets Sh20.41 billion under this, while an equitable share from the National Treasury will fund the plan to the tune of Sh20.38 billion.

The county targets to raise Sh600 million from rental income.

“The full implementation of this plan will call for a concerted effort with other development partners, including the national government and all stakeholders. The county will also leverage other financing options, including public-private partnerships (PPPs), Joint ventures, grants and infrastructure/green bonds,” the plan reads.

County Executive Committee Member, Finance and Economic Affairs, Charles Kerich notes that scarcity of housing is one of the issues the county seeks to address in the plan in addition to traffic congestion, health, and inadequate social infrastructure.

“Resources will be set aside towards the priority areas identified by this plan, a result of rigorous consultation by the county sectors, and members of the public,” he said.