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Kenya Defence Forces Signs Housing PPP Deal


Kenya’s defence ministry has signed a public-private partnership (PPP) agreement with China Railway Engineering Group (CREG) to build affordable housing for members of the Kenya Defence Forces (KDF).
The KDF housing PPP project entails the construction of affordable housing and associated support facilities for military personnel across five sites, namely Roysambu in Nairobi, Kwambuzi Nanyuki in Laikipia county, Gilgil and Lanet in Nakuru county and Nyali in Mombasa city. It aims to address the shortage of housing available for military personnel.
Defence Principal Secretary Mr. Patrick Mariru and the Director of China Railway Engineering Group, Mr. Hu DongPo earlier today signed a housing agreement contract dubbed ‘KDF Public Private Partnerships Housing Project’.https://t.co/MZ0DLakVT0 pic.twitter.com/Mk7UARafxr
— Kenya Defence Forces (@kdfinfo) January 17, 2024

As per the project’s preliminary information memorandum published in 2021, the work will be undertaken in phases. The first phase involves the development of 2,340 residential units with a total estimated built-up area of 104,125 square metres, associated infrastructure and amenities for use by KDF non-commissioned officers (NCOs).
The first phase is expected to be completed within 24 months at a cost of Kenyan shilling 7.5 billion (US$46 million). 
According to the memorandum, the project will be implemented under a build-lease-transfer (BLT) contract model. CREG will lease the project sites from KDF, develop the residential units and then lease them back to the defence ministry for a specified term. Once the lease expires, the lease payments by the ministry will cease and the lease will terminate.
Number and type of residential unitsSource: Defence ministryRoysambu siteThe Roysambu project site is located along the Nairobi-Thika highway, about 12km from the Nairobi central business district. A total of 500 residential units will be built across 15 acres, with an estimated built-up area of 42,000 square metres. Other infrastructural developments include an internal road network and parking areas, power connection, which may entail the installation of a transformer and power reticulation, and sewer and water connections including the construction of a water reservoir with a capacity of three days’ consumption. A kindergarten and a children’s playground are also planned to be built. 
Kwambuzi-Nanyuki siteThe Kwambuzi-Nanyuk site is located in Laikipia county along the A2 highway. Some 737 residential units will built across 300 acres, with an estimated built-up area of 17,714 square metres.
The site will require internal roads and parking, a transformer and associated power supply reticulation as well as a new sewer line. A 2km water pipeline will also to be constructed as well as a kindergarten and a playground. 
Nyali siteThe Nyali site is located along the A109 highway in Mombasa county and is expected to host 368 residential units across 10 acres, with a total built-up area of 15,931 square metres.
Internal access roads and parking spaces, power reticulation to the residential units, a biodigester for sewage treatment, a potable water supply line and a water reservoir form part of the project scope along with a kindergarten and children’s playground.
Lanet siteThe Lanet project site is located off the A8 highway close to Nakuru county. A total of 125 units will be built across 21 acres, with 10,800 square metres of built-up area.
Additional infrastructure requirements include an internal road network and parking as well as power connection and reticulation and sewer and water connections. A kindergarten and children’s playground will also be built. 
Gilgil/Kenyatta Barracks siteThis site is located in Gilgil town off the A8 highway and is expected to feature 610 residential units across 200 acres, with a total built-up area of 17,500 square metres. Infrastructure requirements include an internal road network, parking, power connection and reticulation and sewer and water connections. 
Built-up areas of project sitesSource: Defence ministryThe housing project was first announced by the defence ministry in April 2021, when the military’s then chief of infrastructure Dennis Kamuri said the project had been allocated Kenyan shilling 1 billion (US$6.1 million) from the ministry. The remainder would be paid in quarterly instalments of Kenyan shilling 125 million (US$766,871) raised from members’ deductions on their house allowance, Kamuri said.
Top photo: Contract signing ceremony (Source: Defence ministry)


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