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Public-Private Partnerships for Affordable Housing

Affordable housing

Introduction

Affordable housing remains a major challenge for African cities experiencing rapid urban growth. In Kenya’s capital, Nairobi, demand for decent and low-cost housing continues to rise, yet the market still favors high-end developments. This imbalance has left many families in informal settlements, often without access to water, sanitation, or land tenure.

At the Indepth Research Institute (IRES), we believe that sustainable urban growth is only possible when land and housing systems work for everyone. That is why we study real-world cases like the Greenfield Urban Housing Project, which show how inclusive planning, smart land use, and strategic partnerships can transform lives.

Background: The Housing Gap in Nairobi

Nairobi has faced a growing housing crisis for over two decades. With over 60% of city residents living in informal settlements, the need for affordable, dignified housing has never been more urgent. Meanwhile, land prices have climbed, and developers have focused mainly on the upper-income market.

Government policy has often fallen short in addressing these issues, mainly due to limited resources and weak implementation frameworks. However, the Greenfield Urban Housing Project, launched in 2017, offered a new direction. It demonstrated how public-private partnerships (PPPs) can bridge the housing gap by using land more efficiently and ensuring that housing is accessible across income levels.

The Greenfield Project: A Mixed-Income Model

The Nairobi County Government and a private consortium of developers identified 25 acres of underused public land in the eastern part of the city. Rather than auction the land to the highest bidder, the county entered into a development partnership that aimed to deliver a mixed-income housing estate with integrated social services.

The project planned 1,200 housing units, 40% of which would be affordable to low-income earners. The rest would target middle- and high-income buyers. The development was financially structured so that proceeds from high-end sales would subsidize the cost of low-cost units—a model that proved both inclusive and self-sustaining.

Construction began in 2018. A unique aspect of this project was the involvement of the community from the very beginning. Local residents and civil groups took part in the planning process, which helped reduce resistance and built long-term support. Housing units came with flexible ownership models—some residents purchased units outright, while others accessed rent-to-own plans or long-term leases.

Government support included infrastructure like roads, water, and electricity, while developers focused on timely delivery and quality control. This balance of responsibilities ensured that the project stayed on schedule and met required standards.

If you are interested in how land development models like this can work in your region, consider enrolling in our Real Estate Development and Management short course.

Outcomes and Impact

By 2021, the estate was fully occupied. Residents who previously lived in overcrowded slums were now in well-planned homes with access to schools, clinics, and clean public spaces. There was a visible improvement in security, sanitation, and small business growth within the estate.

Most importantly, people from different income backgrounds now lived in the same neighborhood. This mix encouraged interaction, cooperation, and reduced social barriers. It also influenced how future urban planning was approached in Nairobi. More city planners began adopting mixed-use zoning and integrated land use principles in new projects.

The project’s success encouraged the Nairobi County Government to launch similar developments in Embakasi and Eastlands. These projects are now applying lessons learned from Greenfield to expand access to decent housing on other parcels of public land.

Key Takeaways for Urban Planners and Investors

The Greenfield project reinforces some core principles we teach at IRES:

  • Public-private partnerships can deliver results where traditional approaches fall short.
  • Secure land tenure and access to services are just as important as the housing units themselves.
  • Community involvement leads to better outcomes, greater trust, and more sustainable development.

The Greenfield Urban Housing Project is a strong case study in how cities can address housing shortages without deepening inequality. Through smart land use, inclusive financing models, and genuine collaboration, the project delivered affordable, secure, and dignified housing for hundreds of families.

At IRES, we remain committed to advancing such solutions across Africa. By offering targeted training in land governance, real estate finance, and housing policy, we aim to equip professionals with the skills needed to reshape their cities, one project at a time.

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