July 26 (Bloomberg) -- Kenya’s National Housing Corp., a state-owned company, said it plans to build 20,000 houses in the East African nation over the next five years.
The first phase will involve the construction of as many as 3,000 homes at a cost of as much as 6 billion shillings ($74 million), Chairman Bosire Ogero told reporters today in the capital, Nairobi. Mahan Industries Ltd. of Iran will provide funding for the first phase of the project, he said.
“We envisage that the National Housing Corp. will provide land and technical personnel,” Ogero said.
Kenya’s urban areas require 150,000 housing units a year compared with 35,000 produced, resulting in overcrowding and informal settlements, Housing Finance Ltd., the country’s only publicly traded mortgage company, said on June 14.
National Housing Corp. and Mahan Industries will form a joint venture committee to oversee construction of the first phase of houses, Ogero said.
The corporation is in the process of setting up a factory that will produce pre-fabricated housing panels, James Ruitha, the company’s managing director, told reporters today. The land, equipment and initial panels produced will cost 700 million shillings, Ruitha said.
“Once the factory is here with us then we shall adopt those panels in our other construction projects,” he said.
It is expected that the factory will be set up by the end of this year, Ruitha said.
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