The National Housing Corporation (NHC) has entered into a transformative public-private partnership with the International Finance Corporation (IFC) to construct 3,000 housing units in Machakos County.
The ambitious project will sit on 150 acres of land, with NHC Managing Director David Mathu announcing plans to transform the area into a future city.
The development will be part of NHC’s broader 2023–2027 Strategic Plan, which targets the construction of over 110,000 housing units countrywide under the government’s Universal Housing Programme.
Mathu described the Machakos venture as a “multi-billion-shilling investment” and a key pillar in the corporation’s goal to contribute at least 10% of the 1 million housing units targeted by the state by 2027.
In a significant boost to student welfare, NHC also signed a Ksh 1 billion Memorandum of Understanding (MOU) with Machakos University for the development of 3,000 hostel units, a move aimed at addressing a critical shortage of student accommodation.
The university, with a student population of over 12,000, currently has capacity for just 500 hostel residents.
“This project will not only solve the hostel crisis in Machakos University but will also provide a benchmark for similar institutions across the country,” said Prof. Joyce Agalo, the university’s Vice Chancellor.
She noted that lack of accommodation has prevented students from accessing key resources such as ICT labs and exposed many to insecurity outside campus.
Prof. Agalo emphasized that the hostels, which are set to be built within one year, would be the first NHC-university partnership of its kind, and would deliver “conducive, secure and affordable living conditions” on campus.
Speaking during the signing ceremony in Naivasha, NHC Board Chairman Yusuf Shanzu added that the partnership represented a timely solution to the “long-standing crisis of hostel shortages” facing Kenyan universities. He noted that many students currently depend on costly private accommodation with little regulation or oversight.
“Machakos University stands as a pioneer. We believe other institutions will follow suit as part of a broader push to enhance student welfare and academic focus,” Shanzu said.
Mathu, on his part, noted that the university housing project was part of a larger portfolio that includes 17 other housing projects spread across the country. These developments, he said, reflect the Corporation’s commitment to “innovative financing and practical solutions for Kenya’s urban and educational challenges.”
The announcement comes amid a renewed national effort to ease the housing crisis, boost construction sector jobs, and align infrastructure development with educational and economic goals.
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