The Alliance Capital Partners East Africa Housing Fund is a limited liability partnership that is seeking to raise Kshs 500 million to invest in housing development in the East African Community countries of Kenya, Uganda, Tanzania, Rwanda and Burundi.
The current deficit of housing units in urban areas of East Africa is conservatively estimated at 1.25 million with close to 40% of this shortfall made up of lower-middle and middle income market demand.
Low-middle and middle income housing provision in East Africa has long suffered from limited availability of risk capital for housing development and mortgages leading to low entrepreneurial interest in large scale housing development and limited access to end-financing for prospective buyers.
The Fund shall invest directly in low-middle and middle income housing (and related amenities) and serviced plots by providing risk capital to property developers in this segment. Holding its first close at Kshs 200 million, the Fund shall capitalise on continued convergence of the East Africa region to grow what should be a replicable model to address similar challenges in the wider African housing market.
