New residential projects target middle-income homebuyers to address affordable housing gaps

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New residential projects target middle-income homebuyers to address affordable housing gaps

Fifteen years ago, the area now known as Tilisi was largely undeveloped, characterised by dusty access roads and scattered settlements.

Today, it has transformed into a thriving 400-acre mixed-use development that combines residential neighbourhoods, logistics parks, factories and commercial spaces, making it one of the fastest-growing satellite towns on the outskirts of Nairobi.

According to Tilisi management, the development is now home to more than 540 families and has created over 700 permanent jobs through businesses operating within the estate.

The latest milestone came on Saturday when International Housing Solutions (IHS) Kenya unveiled Muzi Salama, a KSh1 billion residential project comprising 240 two- and three-bedroom apartments. The development forms part of IHS Kenya’s broader plan to deliver 3,000 homes across the country by 2030.

Located within the master-planned Tilisi community, Muzi Salama benefits from existing infrastructure, including roads, water and sewer systems, reducing construction costs and allowing greater investment in the housing units themselves.

IHS Kenya Managing Director Kioi Wambaa said the project’s location enables the company to concentrate resources on building quality homes rather than first developing essential infrastructure.

“We did not have to begin investing significant amounts of money in infrastructure because it was already existing,” he said.

Beyond providing apartments, the developer says the project is designed to create a complete community, with green spaces, children’s play areas, cycling lanes, walking paths and retail amenities.

The estate will also pursue EDGE (Excellence in Design for Greater Efficiencies) certification through features such as solar-powered lighting in common areas, water-saving fixtures and energy-efficient technologies.

The apartments are priced from KSh6.55 million for two-bedroom units and KSh8.6 million for three-bedroom homes. While the project targets Kenya’s middle-income market, affordability remains a key challenge for many prospective homeowners.

Wambaa noted that expanding access to affordable mortgages is just as important as increasing housing supply, pointing to the Kenya Mortgage Refinance Company (KMRC), which has enabled participating banks and SACCOs to offer single-digit mortgage rates. However, mortgage uptake in Kenya remains relatively low, with many buyers still relying on savings or informal financing.

Tilisi Chief Executive Grareme Reid said the development aligns with the estate’s long-term vision of creating a mixed-income, mixed-use urban centre where people can live, work and access essential services within the same community.

With additional retail, healthcare and commercial investments expected, Tilisi continues to evolve into a major economic hub west of Nairobi.

Even so, industry players maintain that addressing Kenya’s housing shortage will require sustained collaboration between government, financiers, developers and investors to ensure that quality housing remains within reach of ordinary Kenyans.

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Fifteen years ago, the area now known as Tilisi was largely undeveloped, characterised…


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