The European Investment Bank (EIB) through its development arm EIB Global, is driving Kenya’s shift towards sustainable urban living with a €21.5 million equity investment in the IHS Kenya Green Housing Fund.
The initiative is financing the construction and acquisition of affordable, energy-efficient homes for low- and middle-income households.
IHS Kenya is currently developing three projects in Nairobi’s Tilisi, Garden City, and Mashiara Park areas, totaling 664 housing units, with a further 10 projects in the pipeline in Nairobi and Kiambu counties that will add more than 2,600 units. One of its flagship developments, the “Muzi Stawi” complex at Garden City Precinct, is almost 90% complete. The project, which broke ground in January 2024 and is scheduled for completion in October 2025, will deliver more than 200 one- and two-bedroom apartments.
“With housing costs rising, we are working with experts, planners and policymakers to improve living conditions, reduce energy costs and support climate-friendly urban growth,” said Edward Claessen, Head of the EIB Regional Hub for Eastern Africa.
The fund has already attracted €83.4 million in commitments from local and international investors. According to IHS Kenya Managing Director, Kioi Wambaa, the goal is to deliver about 4,000 affordable, green-certified homes by 2030. “Our investments reflect our ambition to redefine what affordable housing can be. Affordability and excellence can go hand in hand,” he said.
Kenya’s housing deficit remains severe, with more than 7 million of the country’s 12 million households living in urban areas—most in informal settlements—according to the Kenya Population and Housing Census. Only 2% of officially constructed housing is targeted at lower-income households, according to the Kenya Institute for Public Policy Research and Analysis.
By combining affordability with climate action, the IHS Kenya Green Housing Fund aims to address both social and environmental challenges. Buildings account for nearly 30% of global greenhouse gas emissions, according to the UN Environment Programme. The EIB, which calls itself the world’s “climate bank,” says green housing models like IHS’s are key to advancing sustainability while improving quality of life for vulnerable groups.
