Industry Highlights – Week Ending 03.05.2025
- Real Estate Sector.
Banks and Saccos eye affordable home KMRC loan funds
The Kenya Mortgage Refinance Company (KMRC) is reviewing submissions from 42 commercial banks and SACCOs to determine their eligibility for accessing long-term funding for onwards lending to homebuyers. This follows KMRC’s move to open its doors to non-shareholding lenders.
Source: Business Daily
How the State-linked agency (KMRC) decides who gets affordable housing loans
The Kenya Mortgage Refinance Company (KMRC) allows prospective homebuyers to borrow money through their banks or savings and credit cooperative societies (saccos) at single-digit rates with a repayment period of up to 25 years.
Source: Business Daily
Kiserian, Juja, Thika lead Nairobi satellite towns in land price growth
Kiserian, Juja, and Thika recorded the highest land price increases among Nairobi’s satellite towns in the first quarter of 2025, driven by buyer interest in lower-priced areas amid economic uncertainty.
Source: NTV Kenya
Realising the dream of affordable housing
Focusing on efficiencies in procurement, reducing spending, and planning in advance are essential survival tactics for developers hoping to avoid financial difficulties, debts, and insolvency.
Source: Nation Africa
Treasury Moves to Scrap Tax Breaks for Affordable Housing
The Treasury’s Finance Bill 2025 proposes ending VAT exemptions on construction materials for affordable housing. If approved, developers in the affordable housing sector seeking to benefit from the exemption will be required to obtain prior approval from the State Department of Housing.
Source: Business Daily
State to accept payslips in allotting affordable homes
The Kenyan government will now accept pay slips as proof of income to enable more citizens to qualify for affordable housing units, even in the absence of an initial deposit. This move aims to address the low uptake of the units and broaden access for low- and middle-income earners.
Source: Business Daily
Rotana expands into Africa and emerging markets with six new hotels.
Rotana, a leading hospitality management company based in the Middle East, has announced its strategic expansion into Africa and other emerging markets. The company is set to open six new properties in Ghana, Kenya, Benin, and Iraq as part of this initiative to strengthen its global footprint.
Source: Zawya
Ethiopia to Open Real Estate Market to Foreigners in New Draft Law
Ethiopia’s Council of Ministers has approved a draft law permitting foreign nationals to own immovable property in the country. This marks a major shift in the nation’s real estate policy, aimed at stimulating foreign capital investment, boosting affordable housing development, and generating employment opportunities through the real estate sector.
Source: Ethiopian Business Review
- Infrastructural development
Revival of Voi-Mwatate-Taveta Railway Line
The revival of the Voi-Mwatate-Taveta railway line is set to commence within six months. The project is expected to enhance trade between Kenya, Tanzania, and beyond by easing cargo movement from the Port of Mombasa, cutting transport distance to Northern Tanzania, and supporting local economic development through improved connectivity and investment opportunities.
Source: The Standard
- Energy Sector
Ketraco restarts bid for Ksh31.8 billion power line after Adani deals.
The Kenya Electricity Transmission Company (Ketraco) has revived its plans to construct Ksh31.8 billion worth of transmission lines through a public-private partnership, following the cancellation of an earlier contract with India’s Adani Group.
Source: Business Daily
Kenya eyes extra Ethiopian power to escape rationing
Kenya Power has initiated formal discussions with Ethiopia to secure an additional 50 to 100 megawatts of electricity. This move aims to meet rising demand and avoid potential power rationing as local energy reserves strain.
Source: Business Daily
