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Published August 15, 2026businesscementeconomy

Financing, tax uncertainty affecting affordable housing drive – IHS

IHS Kenya has unveiled Muzi Salama, a Sh1bn residential development that will deliver 240 two- and three-bedroom apartments

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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IHS Kenya has unveiled Muzi Salama, a Sh1bn residential development that will deliver 240 two- and three-bedroom apartments International Housing Solutions Kenya MD Kioi Wambaa during the unveiling of the real estate developer’s Sh1 billion Muzi Salama housing project in Tilisi /MARTIN MWITA Kenya's efforts to close its housing deficit face major hurdles ranging from expensive and inadequate financing to tax uncertainty, with the private sector calling for stronger collaboration with government to unlock investment in affordable homes.

According to the International Housing Solutions (IHS), a Pan-African housing provider, delivering affordable housing at scale will require patient capital, predictable tax policies and a stronger partnership between the public and private sectors. This comes as Kenya continues to face an accumulated housing deficit of more than two million units, according to the World Bank, with demand growing by between 200,000 and 250,000 units annually.

The government has set a target of constructing 200,000 affordable housing units every year under its Affordable Housing Programme. IHS Kenya managing director Kioi Wambaa said the scale of the challenge means government cannot solve the housing crisis alone. “The government cannot do everything.

It is unrealistic to think that you can take all your problems to the government and expect them to sort it out,” Wambaa said. His remarks come as IHS Kenya unveiled Muzi Salama, a Sh1 billion residential development at Tilisi in Limuru that will deliver 240 two- and three-bedroom apartments, reinforcing the company's long-term investment in Kenya's housing sector and expanding the supply of professionally developed residential communities.

This milestone positions IHS on track to deliver 3,000 homes by 2030, reinforcing its leadership in the institutional delivery and management of investment-grade housing for the middle income market that combines financial sustainability, environmental stewardship, and social impact.

Located within the master-planned Tilisi development, the project combines quality construction, sustainable design and professional property management to create communities that deliver long-term value for both homeowners and investors. Wambaa said government has made progress but could do more by working closely with developers and other players to identify areas where policy interventions can unlock private investment.

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Financing, tax uncertainty affecting affordable housing drive – IHS

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Document: The Star Kenya Business · Source: The Star Kenya Business

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