Centum Real Estate (Centum Re) is expanding its presence in the homeownership market by launching a sustainable housing initiative called “Mzizi.” This initiative offers affordable housing options, starting at Sh1.9 million, at the Two Rivers complex.
Variety of Housing Options at Two Rivers
The Mzizi project features studio apartments priced at Sh1.9 million, while three-bedroom units are available for Sh10 million. This development is part of a broader trend of more affordable housing options entering the market, driven by increased investor interest.
Middle-Class Accessibility
As more investors enter the affordable housing sector, the cost of units has been steadily decreasing, making homeownership more accessible to Kenya’s middle class, who have traditionally been priced out of the market. For example, Edermann Property Limited offers competitive three-bedroom apartments at Sh2.95 million.
Centum Re’s Ambitious Project
Centum Re plans to build 2,000 housing units, funded by a Sh3 billion ($20 million) loan from the International Finance Corporation (IFC). This project will be developed in phases, with the first phase of 300 homes already well underway.
Financing and Strategic Growth
The IFC loan, with a seven-year repayment period, allows Centum Re to take a long-term approach to developing large-scale housing communities. Additionally, Centum Re is utilizing proceeds from a recently repaid Sh3 billion bond to finance this and other housing projects.
Market Opportunities and Profit Turnaround
With only 21.3 percent of Kenya’s urban population owning homes, there is significant opportunity for growth in the homeownership market. Centum Re reported a profit of Sh518.8 million for the half-year ending in September, reversing a Sh267.9 million loss from the previous year.
Future Developments
Centum Re is integrating both residential and commercial elements, such as office spaces, into its projects. The company aims to complete the first phase of this development by July, signaling its commitment to addressing Kenya’s housing needs.
