The Nairobi City County Government has announced a major step in its Urban Renewal Programme by inviting bids for the design, financing, construction, and sale of affordable housing units.
The initiative, anchored in the Nairobi Integrated Urban Development Master Plan (NIUPLAN), seeks to redevelop old county estates and expand housing stock for both sale and rental purposes.
NIUPLAN Programme
The programme aims to generate a minimum of 60,000 affordable housing units across nine estates, including Bahati, Maringo, Jericho, Lumumba, Ziwani, Bondeni, Embakasi, Kariobangi North, Gigiri, and Woodley.
This phased approach is designed to minimize displacement while increasing access to affordable housing for Nairobi residents.
The projects will be implemented under a Joint Venture (JV) framework, with the government providing land as equity contribution and bidders bringing in financing and technical expertise.
This model is expected to attract private sector participation while ensuring compliance with government standards for affordability and quality.
Maringo Estate Phase II: 5,000 Units Planned
One of the flagship developments under this programme is Maringo Estate Phase II, which will occupy 10 hectares and feature low- and middle-rise housing units.
The project will include social amenities such as Early Childhood Development Education (ECDE) facilities, commercial centers, and green spaces.
The plan targets a minimum of 5,000 units, structured as a mix of townhouses and apartment blocks ranging from five to sixteen levels.
The affordable housing units will follow a 60:40 ratio of affordable to market-rate units.
Pricing for affordable units is capped as follows:
- Three-bedroom units (35%): Not more than KSh4,250,000
- Two-bedroom units (50%): Not more than KSh3,500,000
- One-bedroom units (15%): Not more than Ksh2,500,000
Bidders may propose alternative development models provided they meet these minimum standards.
Market-rate units will also be included, but their prices will be pegged below prevailing market values.
Gigiri Estate: Upper-Class Housing Development
In addition to Maringo, NCCG has opened bids for Gigiri Estate, which will occupy 0.413 hectares and cater to upper-class housing needs.
The project will feature four-bedroom duplexes in two levels, complemented by apartment blocks of up to four levels, with a minimum of 10 units.
Amenities will include a clubhouse, swimming pool, and landscaped green spaces.
Similar to Maringo, bidders for Gigiri Estate will operate under the JV framework and have flexibility to propose suitable models, provided they adhere to the outlined standards.
Selling prices for units will also be pegged below market rates.
Tender Details and Submission
The official tender notice, Retender No: NCC/H&UR/RFP/34/2025-2026, invites qualified developers to submit proposals for design, finance, build, and sale of housing units under the Urban Renewal Programme.
Interested bidders are expected to demonstrate technical capacity, financial strength, and innovative approaches to urban housing development.
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The county government has assured transparency in the evaluation process and reiterated its commitment to delivering affordable housing as part of Kenya’s broader housing agenda.
Affordable Housing Financing and Policy Details
The Urban Renewal Programme aligns with Kenya’s Affordable Housing Policy under the Bottom-Up Economic Transformation Agenda (BETA).
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To make home ownership accessible, the government has introduced several financing mechanisms:
- Affordable Housing Levy: A mandatory 1.5% contribution from employees and employers, collected by the Kenya Revenue Authority, funds housing projects and guarantees sustainability.
- Reduced Deposit Requirement: Buyers of affordable units now pay only 5% deposit, down from 10%, easing entry for low- and middle-income earners.
- Tenant Purchase Scheme (TPS): Residents can acquire homes through structured monthly payments, converting rent into ownership over time.
- Mortgage Support: Through the Kenya Mortgage Refinance Company (KMRC), buyers access long-term mortgages at single-digit interest rates, making financing more affordable.
- Rural Housing Loans: For Kenyans outside Nairobi, loans of up to Ksh4 million are available at 3% interest, repayable over 25 years, provided applicants meet eligibility criteria.
These measures aim to lower barriers to home ownership, stimulate private sector investment, and ensure inclusivity in housing development.
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