KENYA Law and Practice Contributed by: Anne Kinyanjui and Loice Erambo, DLA Piper Africa, Kenya (IKM)
• the Climate Change Act 2023 establishes a regulatory framework for enhanced response to climate change for purposes of achieving a low carbon climate development. 1.2 Main Market Trends and Deals Sustainable Real Estate Finance Sustainable real estate finance continues to gain popularity in Kenya, with notable developments including the following: • the Central Bank of Kenya has published the draft Kenya Green Finance Taxonomy; • adoption of the Green Economy Strategy Implementation Plan 2016-2030 to accelerate a transition towards a low carbon economy; • adoption of the Kenya Sovereign Green Bond Framework to mobilise green sustainable financing; • ongoing development of the Green Fiscal Incentives Policy Framework for Kenya to steer Kenya’s economy into a low-carbon climate-resilient green development pathway; • establishment of the Kenya Green Bond Programme in 2017 to develop a domestic green bond market, with the first green bond to raise capital for a real estate project being issued by Acorn Holdings in 2019; • a partnership between KCB Bank Kenya and the International Finance Corporation to expand KCB’s Green Climate Fund, which provides financing to businesses addressing climate change; and • partnership between the European Invest - ment Bank and the Central Bank of Kenya to launch a climate finance best practice initia - tive. Affordable Housing Scheme (AHS) The President of Kenya aims to deliver 200,000 affordable housing units each year. The Afford - able Housing Act, 2024 has been enacted into
law to provide financing for the AHS by imposing a housing levy and creating an Affordable Hous - ing Fund. The latest AHS projects include Kings Orchid and the Mabera Affordable Housing Project. An affordable unit should cost no more than KES3 million (approximately USD22,640). The Kenya Mortgage Refinance Company was incorporated in 2018 to provide affordable long- term financing to primary mortgage lenders (eg, banks) for the onward provision of affordable mortgage products to Kenyans. Private developers are also investing in afford - able housing products independent of the AHS, including TSAVO and Acorn Holding Limited. Smart Cities and Green Buildings Key projects and deals include: • various Kenyan buildings and developments being certified as green including Britam Tower, Garden City, the Aga Khan Univer - sity Hospital, ALP North Logistics Park, Strathmore Business School, Pope Paul VI Learning Resource Centre at the Catholic University of East Africa, Sandalwood Water - front and UNEP Nairobi building; • a partnership between Africa Logistics Prop - erties and the IFC to promote voluntary green building certification programmes; • the Nairobi Railway City, a proposed mixed- use sustainable development on 425 acres of land located within the Nairobi Central Busi - ness District; • Konza Technopolis (Konza City), a smart city located in Machakos County; • Tatu City, a 5,000 acre mixed-use develop - ment located in Kiambu county; • Tilisi Development, a 400-acre master- planned and mixed-use development located in Kiambu county; and
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