NAIROBI, Kenya – The Kenya Property Developers Association (KPDA) has signed a partnership agreement with the Kenya National Chamber of Commerce and Industry (KNCCI) to accelerate delivery of affordable housing and unlock new financing options for the sector.
The memorandum of understanding (MoU), signed this week, seeks to combine KPDA’s technical expertise and market insights with KNCCI’s national network and policy advocacy muscle to create a more investment-friendly environment for real estate development.
KPDA Chairman Ken Luusa said the collaboration would help streamline approval processes, harmonise policies, and coordinate advocacy in a sector often plagued by fragmented regulations.
“From streamlining approval processes, advocating for consistent policies, and creating a stable environment that attracts investment, we will move from fragmented requests to coordinated advocacy,” Luusa said.
Kenya’s real estate sector contributes about 10 per cent of the country’s GDP and is ranked among the fastest-growing industries in the region. Yet the country faces a massive housing shortfall.
Official data shows that while Kenya needs about 200,000 new housing units annually, it produces only 50,000, leaving a deficit of 150,000 homes every year.
This persistent gap has fuelled a sharp increase in housing prices—up nearly 100 per cent since 2004—pushing ownership further out of reach for many Kenyans.
KNCCI President Dr. Eric Rutto noted that expanding housing delivery would not only meet demand but also generate critical economic benefits.
“Construction of housing is labour intensive, leading to job creation. It is estimated that for every unit constructed, three to five new jobs are created,” said Dr. Rutto.
Beyond housing, the MoU also aims to address shifting trends in Kenya’s wider real estate market.
While Nairobi remains a hub for banks, multinationals, and technology firms, an oversupply of high-end office space has pushed developers toward flexible leasing models and co-working spaces.
Meanwhile, demand for retail space remains strong, anchored by malls such as Two Rivers, Westgate, Garden City and Sarit Centre.
Rising e-commerce and manufacturing activity are also fueling demand for modern warehouses and logistics hubs in Athi River, Tatu City, Ruiru, and Naivasha, buoyed by investments in infrastructure such as the Standard Gauge Railway and Nairobi Expressway.
The KPDA-KNCCI partnership is expected to provide a united front in lobbying for reforms that will make financing, approvals, and development more efficient—offering a boost to President William Ruto’s affordable housing agenda and Kenya’s economic growth ambitions
