The National Social Security Fund (NSSF) is collaborating with the Kisumu County Government to construct 164 modern housing units at Milimani Estate at a cost of Sh2.4 billion.
The project which will encompass 102 two-bedroom units and 62 three-bedroom apartments with servant quarters (SQs) is expected to take nine months to complete and will employ the latest technology and design to construct homes that are ideal for the modern family.
The project comes complete key infrastructure improvements, including upgraded water and sewer systems, paved walkways, and enhanced security installations.
This comes also hot on the heels of another agreement the county recently signed with UN-Habitat to construct low-cost housing worth Sh2.7 billion in Kibuye and Muhoroni.
Speaking during the ground-breaking ceremony for the project in Milimani area on Thursday, Kisumu Governor Prof. Peter Anyang` Nyong`o said the project is part of a broader plan to regenerate old estates and transform Kisumu into a model modern city.
He noted that the ripple effect will be immediate and substantial because jobs will be created, opportunities for skilled artisans and even manual labour will be created and this should go to the people of Kisumu. The governor noted that suppliers too must be sourced from Kisumu.
“This project shows we can achieve great milestones through strategic partnerships. Developing this parcel of land creates an integrated community that will enhance the city’s skyline and improve the quality of life for Kisumu resident, and we have streamlined our approval systems for various services such as water and sewer in a bid to streamline service delivery to the residents,” Nyong`o stated.
The governor observed that project is part of the larger vision of a vibrant lake front with efficient infrastructure and thriving blue economy.
NSSF managing trustee and CEO Mr. David Koross on his part termed this project as a landmark of partnership.
He noted that Real estate and construction now account for over 14 per cent of Kenya’s Gross Domestic Product (GDP), a testament to the power of strategic collaboration and the impact of devolution.
“This ceremony is much more than the start of a property development; it is a vibrant celebration of partnership, a living symbol of what is possible when government institutions join forces as true collaborators,” Koross remarked.
He opined that this innovative agreement to exchange land as a way of resolving longstanding obligations goes beyond tradition, signaling a new era in how we approach development and public finance in Kenya and this milestone sets a precedent for other counties and institutions to embrace creative, mutually beneficial solutions.
“This spirit of partnership is not unique to Kisumu, in Nairobi, NSSF investments have been instrumental in transforming cityscapes, generating employment opportunities, and spurring economic growth. Our vision now extends to counties across the nation, demonstrating each time that when we unite our efforts, the outcomes are far greater than what any single institution could achieve alone.”
The CEO indicated that investment is at the heart of NSSF’s mission and their commitment is to grow the Fund by continually seeking alternative investments that will deliver sustainable returns.
“When I joined the Fund two years ago, I set forth in my manifesto an ambitious target; to grow the Fund’s value to 600 billion shillings and today, I am proud to announce, on behalf of the Board of Trustees and every staff member of NSSF, that the Fund has just surpassed the Sh600billion mark,” Koross said and added that this achievement, reached within just two years, is grounded in the bold vision outlined in their manifesto and the Corporate Strategic Plan 2023-2027.
The CEO pointed that the milestone so far achieved by NSSF is not just a number but reflects the dedication of a united team, prudent stewardship, and a shared belief that the wealth of their members can, and must be grown through bold actions and sound governance.
“Our Strategic Plan charts a clear path forward: to grow the Fund by an additional 400 billion shillings during this cycle, to invest wisely, and to extend our reach to every Kenyan, whether urban or rural, formal or informal” divulged Koross adding that each new development is more than a project but an opportunity for their members, suppliers, and local communities to thrive with the Kisumu project standing as a vital part of the growth journey.
“What we are doing today in Kisumu goes far beyond bricks and mortar, it is a beacon of progress. This ground-breaking signal that NSSF is truly “building Kenya” not just in words, but with every shovel of earth turned, setting new standards for development and collaboration,” he added.
Koross noted that with every ground breaking, NSSF affirms its role as more than a social security provider but rather an agent of transformation, that places members and communities at the very heart of their undertakings.
He added that the Kisumu project stands as a new benchmark for opportunities and impact, bringing real change to residents and inspiring excellence across counties.
The Milimani project is one among several ongoing and planned estate renewal projects across Kisumu, including Lumumba, Makasembo, Anderson, and Mosque estates, with more expected in Kibuye, Kaloleni, and Obunga under the county’s geospatial housing plan. The urban renewal programme aligns with UN- Habitat’s housing model standards and is expected to improve living conditions, expand affordable housing access, and optimize land use within the city.
Kenya's urban housing situation is faced with the challenge of rapid urbanization leading to a massive affordable housing deficit and the proliferation of informal settlements, where many residents live in poverty and inadequate conditions.
There is however strong growth in the real estate market, driven partly by government initiatives like the Affordable Housing Programme (AHP) by the President Ruto administration, but challenges abound due to a lack of financing, high costs, and difficulties in accessing affordable land, creating a complex dynamic of market growth alongside persistent housing poverty.
Kenya's high urbanization rates have led to a significant increase in informal settlements or slums, with a large percentage of the urban population living in them, often in overcrowded and substandard conditions.
There is a substantial and growing housing deficit, with a significant demand for low-cost housing units that outstrips the supply and housing still remains largely unaffordable for a large segment of the urban population, forcing many families into poverty-stricken housing.
Real estate developers and individuals face challenges in accessing long-term financing due to high interest rates and stringent lending requirements thus hindering the construction of more affordable homes.
