KDF eyes private funding to build 11,000 houses for soldiers

The Kenyan military is seeking private investors to help fund, build and operate 11,000 homes for its personnel who face a critical shortage of housing.

The private investors will rent out the houses once completed to Kenya Defence Forces ( KDF) for 15 years, allowing them to recoup their capital running into billions of shillings over the period after which the lease will terminate and ownership revert to KDF, the military said.

This is the first time Kenyan military -which has for years undertaken and financed it’s own projects – has turned to private investors under the private public partnership (PPP) model.

KDF says in internal documents seen by the Business Daily it will set aside Sh1 billion for the first phase of the project with the rest of the funds expected to come from private investors.

“The Ministry of Defence is faced with a shortfall of accommodation for the Kenya Defence Forces (KDF). This is particularly the case for the non-commissioned officer cadre of the KDF,” said the military.

“The immediate need is estimated at 11,200 residential units. Owing to funding constraints, the MoD intends to resolve the housing challenge partly through the use of the PPP project delivery model.”

Phase one, will see the development of 2,340 residential units, according to the documents.

Among the chosen sites for the housing project is the Roysambu military base along the Nairobi-Thika highway where 15 acres of land will be provided for building of 500 residential units.

In the Nanyuki military base, a total of 737 residential units are expected to be constructed on 300 acres of land.

In Lanet military base, a total of 125 units will be put up on 21 acres while in Gilgil’s Kenyatta Barracks 610 residential units will be put up.

Source: Business Daily

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