Affordable Housing in Kenya: How Unity Homes Is Setting New Quality Standards Transforming Tatu City and Beyond

Could you please give us a brief background of Unity Homes?

Unity Homes is a pure-play residential real estate developer. The business was founded in 2015, and we are currently operating in both Kenya and Nigeria. I will elaborate on our projects shortly.

Historically, we have been known for developing affordable housing, typically priced between 5 to 10 million Kenyan shillings. However, we have recently begun to expand our portfolio to include higher-priced products.

To date, we have handed over approximately 2,000 homes and have around 1,500 homes currently under development across our projects in Tatu City in Nairobi and in Nigeria.

Our competitive advantage lies in our vertical integration. Traditional developers typically raise equity and outsource key functions such as architecture, engineering, quantity surveying, and construction resulting in a structure heavily dependent on external stakeholders.

By contrast, we have brought all key functions in-house, from design and development to construction, sales, and marketing. This adds complexity to our operations but offers significant advantages, especially in construction.

As our own contractor, we focus on what is most important: delivering high-quality homes. This would not be possible if we were reliant on external parties. For example, each of our sites has around 15 dedicated quality control inspectors. Their sole responsibility is to inspect the quality of each house. Every apartment goes through over 2,000 individual quality checks. This ensures not only quality but also uniformity across all our projects. Anyone purchasing a Unity Homes property can expect a consistent finish.

We are also deeply committed to health and safety. Following an on-site accident several years ago, we sought to bring in the best global expertise. We worked with an international recruiter based in London to find someone with senior experience in health and safety from the oil and gas industry.

We eventually shortlisted three candidates; one Kenyan and two Europeans and hired the Kenyan purely on merit. He had spent many years as a senior HSE lead at Halliburton, a major oil and gas company in the Middle East.

Since bringing him on board, we have implemented international oil and gas health and safety standards across our construction sites. This, along with our stringent quality control, has introduced a level of rigour that most developers are unable to match.

As a result, we are able to deliver exceptionally high-quality products. Anyone who visits our sites can attest to the quality of our developments. It is our defining feature and one we take extremely seriously.

Where are you in terms of Delivery Timelines?

At present, we are rolling from one project into another. To give you some background: our first development was in Eldoret, where we built 239 homes. That project is fully sold.

In 2018, we moved to Tatu City, where we acquired 23 acres of land and began development in 2019. We started with Unity West and subsequently moved to Unity East. These are two distinct developments comprising just over 1,000 homes in total.

Unity West comprises two-bedroom units of 61 square metres. Unity East offers two-bedroom units of 76 square metres and three-bedroom units of 150 square metres. Both projects are fully sold out. We just completed construction of Unity East recently and are currently addressing the final snag list.

Our ongoing projects some of which have available units, while others are still off-plan include Unity One, a development of 600 one-bedroom apartments. We are halfway through the project and have handed over approximately 300 units.

Typically, we sell units well in advance of completion. We hold substantial customer deposits, and construction often lags behind sales. Therefore, most buyers need to secure units well in advance. That said, there are still a few completed units in Unity One available for immediate purchase.

Adjacent to Unity One, we have recently broken ground on Unity Parkside, a 338-unit project. This is priced slightly higher than our previous offerings. The off-plan price begins at KES 10.5 million, with the three-bedroom units priced at KES 15 million.

An attractive feature of this development is that it will border an animal conservancy being developed by Tatu City, adding significant value for investors.

Providing amenities is something we are passionate about. We have collaborated with Tatu City on other developments as well. Adjacent to Unity East and West, we co-developed a 40-acre park that includes a basketball court, football pitch, walking trails, and an outdoor gym. Internally, we have built a gym, swimming pool, and a bar.

These amenities enhance footfall and increase the value of our properties. Early buyers at Unity West purchased their units at approximately KES 4 million. Although the secondary market is still in its early stages, these units are now reselling for between KES 8 million and KES 8.5 million.

This equates to a compound return of 16 percent on capital, along with a rental yield of six to eight percent. Altogether, buyers are realising total returns of between 22 to 24 percent on what is ultimately a very safe investment. By providing these amenities, we have significantly increased footfall into our estates and uplifted the value of our products.

The final product, which represents a clear departure from our previous offerings, is Silverhill. As mentioned earlier, we have historically been known for affordable housing, for lack of a better term. However, we decided to explore the more upmarket segment of the market.

We are developing 100 units whose façade is inspired by London townhouses, complemented by high-quality internal finishes. Phase One, comprising 35 units, is scheduled for completion around the beginning of next year.

Of those 35 units, nearly all have already been sold. There is a mix of a few available units and others being sold off-plan.

In Nigeria, the business operates under the name Universal Homes, as “Unity Homes” was already registered. There, we are developing 576 two- and three-bedroom apartments. At present, we have handed over approximately 150 units, with construction still ongoing.

Is the site in Lagos?

No, it is about 70 kilometres from Lagos, in the Lekki Free Trade Zone — near where Dangote has built his refinery.

So in this case, is it for Investors who want to buy and hold, or for people who actually want to live there?

 Almost exclusively investors. That is simply how the market works here. Since we don’t have a financialised market, people are buying properties in cash. Typically, they purchase homes they can afford not necessarily ones they intend to live in. So they buy an apartment and then rent it out. I would say about 95% of our buyers are investors who then rent out the units.

Now, we do not know much about the Kenyan market. Could you give us a brief overview?

There is a widely discussed 2 million housing deficit in Kenya, growing at a rate of 250,000 houses annually. But the biggest challenge for any developer here is affordability. Unlike Western markets, we don’t have a strong financial system supporting real estate. There are only around 30,000 active mortgages in a population of 55 million  that is almost negligible.

As a result, it is primarily a cash market. So, while many people want homes, very few can actually afford to buy them. We estimate that only about 1–2% of the population are buyers. The rest are typically middle-class renters.

That said, the government has introduced initiatives to address this affordability gap. There is the Affordable Housing Programme, which we are not currently part of. But in partnership with the World Bank, the government has also launched the Kenya Mortgage Refinance Company (KMRC).

These are subsidised mortgages with interest rates as low as 9.5%, fixed for 25 years. It offers significant value — while rent increases annually with inflation, your mortgage repayment stays fixed. Over time, the value of your repayments diminishes relative to the increasing rent and inflation. So, from a time-value-of-money perspective, it is a highly attractive proposition. We are aggressively pushing this product, especially on our Unity One project, and we have  seen a positive response so far.

However, we have witnessed some erosion in domestic purchasing power, it is a trend that is affecting many African economies. Exchange rate volatility has been significant: the Kenyan shilling went as high as 160 to the dollar and has now stabilised around 130. But overall, economic performance has not been as strong as in previous years.

One strategic pivot we have made is towards the diaspora. Kenya receives around $5 billion annually in diaspora remittances. For context, Nigeria receives about $20 billion. We have proactively deployed sales teams into the diaspora to sell to Kenyans living abroad.

This shift has proven very successful approximately 60% of our sales in Kenya now come from the diaspora. In Nigeria, it is even higher; around 75% to 80% of sales come from Nigerians abroad. So, this diaspora focus has been a significant opportunity for us in terms of attracting capital into Kenya and into our developments.

What makes Unity Homes stand out?

I will go back to the fact that we are our own contractor. This gives us a significant competitive advantage. It allows us to deliver on time and to an exceptionally high standard.

A lot of companies claim they deliver quality, but we are genuinely pedantic about the quality of our builds. Anyone who has visited our developments will say the same we are known for delivering very high-quality homes. I don’t want to criticise our competitors too much, but if you look across the market especially in East Africa, Kenya, and Nigeria, much of the available inventory is substandard. Despite the marketing, there is a lot of poor construction out there. We are very passionate about changing that.

The other thing that really sets us apart is the kind of environment we create. We have invested heavily in world-class amenities because buyers are looking for safe, secure, and enriching environments to raise their children. That is been a major focus for us.

We also established Our Community Foundation, which runs our estates and organises activities for families from libraries and scouts to various community programmes. It is  about creating an ecosystem where people, especially children, can thrive. That’s what homebuyers particularly those in the diaspora are looking for: not just a house, but a community.

Let us look at the next two to three years. What is your short-term vision and strategic priority?

Without revealing too much, I can share that we have several promising projects in the pipeline. Broadly, our plan is to expand geographically across Kenya. For instance, we are currently exploring opportunities along the coast.

We are also aiming to launch a large-scale project —  100 to 200 acres — where we can develop thousands of housing units in one location. This will be a “live, work, play” environment, with integrated commercial areas, fully tailored for estate living.

We do not just want to do scattered projects in Nairobi like everyone else. We are focused on building scale and creating a competitive moat around our business. Our model is mass housing, but with quality and community at the core.

We hope to share more in the next six months as things evolve.

How large are you thinking, 3 to 5 thousand units?

Ideally, yes. We would like to secure land with an option to expand, giving us flexibility to scale. We are targeting thousands of units per location, provided the conditions are right.

Is finding the right location a challenge?

Not necessarily. The real challenge is finding land with a clean title. Especially with larger parcels, ensuring legal clarity is critical. That is why we have had so much success developing in Tatu City and Alaro City both offer secure land titles, and that’s been a big advantage.

We are not ruling out acquiring more land in those areas, either. We have really enjoyed our partnerships and projects there.

Would you be open to partnerships or attracting large-scale investors as part of that expansion?

We are cautious when it comes to partnerships. While we’ve had a successful joint venture with Rendeavour in Alaro City, many real estate partnerships tend to go poorly. So yes, we are skeptical.

As for investment, we are open but we believe we will have the cash flow by the end of this year or early next to finance our next steps independently. So for now, our strategy is to go it alone. Investment may be on the table in future, but it is not something we are actively pursuing right now.

Is there a final message you would like to share with the diaspora audience?

Yes. Unfortunately, the real estate industry in this region has earned a poor reputation and often, rightly so. Many people have been burned they have paid deposits but never received the homes they were promised.

We have worked extremely hard to build trust in our brand. Our track record speaks for itself, we deliver on time, and we deliver exactly what we promise.

For the diaspora, trust is everything. Many of them only visit once a year, if at all, so they’re often buying remotely and relying entirely on our credibility. That is why we’ve implemented strict internal procedures for handling customer deposits. Until we hand over the home, that money is not ours. It is treated as a liability on our books.

We also do not shift funds from one project to another. Every deposit stays within its designated development. That level of discipline, financial integrity, operational consistency is how we have earned the diaspora’s trust. And that is why we’ve seen real success in that market.