KENYA Law and Practice Contributed by: Anne Kinyanjui and Bonface Abuya, DLA Piper Africa, Kenya (IKM Advocates)
• adoption of the Kenya Sovereign Green Bond Framework to mobilise green sustainable financing; • launch by the Government of the County Cli - mate Change Fund/Green Investment facility in late 2024, backed by FSD Kenya, to sup - port county-level green projects; • ongoing development of the Green Fiscal Incentives Policy Framework for Kenya to steer Kenya’s economy onto 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 and being fully redeemed in 2024 ahead of its November 2024 maturity date; and • establishment of Dhamana Guarantee Company in 2024 to provide local currency guarantees for projects that address climate change and promote sustainable develop - ment goals. Affordable Housing Scheme (AHS) Kenya faces a housing deficit of approximately 200,000 units annually. Affordable housing pro - jects aim to bridge this gap by providing low-cost homes for middle and low-income earners. The Affordable Housing Act has been enacted into law to provide financing for the AHS by impos - ing a housing levy and creating an Affordable Housing Fund. The latest AHS projects include Pangani, Shauri Moyo ‘A’ and Starehe Point. An affordable unit should cost no more than KES3 million (approximately USD23,200). 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 prod - ucts to Kenyans.
Private developers are also investing in afford - able housing products independent of the AHS, including TSAVO and Acorn Holdings Limited. The Ministry of Lands, Public Works, Housing, and Urban Development reports that 140,000 affordable houses have been constructed so far. Significant Real Estate Deals Over the Last 12 Months Key projects and deals include: • Acorn Holdings Limited secured a USD180 million financing deal with U.S. Development Finance Corporation for the development of affordable and sustainable EDGE-certified student housing units in Kenya (almost 48,000 beds); • International Housing Solutions, a South African private equity fund manager launched “Muzi Salama” , a green affordable housing project located in Tilisi which comprises 240 green units; • in the hospitality sector, GTC’s 315-bed, 35-storey hotel tower operating under the JW Marriott brand was completed. Other hotels that opened in 2024 include the 211-room Glee Hotel and the 105-room M Gallery Hotel in Gigiri; and Marriott International announced and continued with plans to launch luxury safari camps under its Ritz-Carlton and JW Marriott brands; • part of ALP West Logistics Park in Tilisi was authorised to operate as an export process - ing zone; and • in the retail sector, major retailers such as Quickmart and Naivas continued their expan - sion by opening new outlets. GTC Mall and Mwanzi Market, both in Westlands, were completed.
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