Houses Manny Pacquiao built for the poor Philippinos
Houses Manny Pacquiao built for the poor Philippinos

Kenyan President Uhuru Kenyatta said on Thursday that the construction of decent and affordable houses for Kenyans will be put up through the off-balance sheet-financing model.

Kenyatta said this model will not only remove a huge burden on Treasury but will also ensure the construction of the houses under the Big Four agenda on food security, affordable housing, manufacturing and universal health care is expedited.

Kenyatta said in a statement issued after he held talks with top officials of Actis led by Senior partner Torbjorn Caeser in Nairobi that the proposed social housing project will provide affordable accommodation to people of both low and middle incomes.

Under the off-balance sheet-financing, the government will not be required to pay any initial money to the contractor but has an obligation to assess its capacity and also demand for a bank guarantee and performance agreement.

Actis is a leading multi asset emerging market investor with a growing portfolio of investments across Africa, Latin America and Asia. It operates 12 offices across these continents.

“The government will only be required to meet its financial obligations once the contractual agreements are met and the project complete,” Kenyatta said in the statement.

Under this arrangement, the financier gets paid by the guarantor (bank) if the contractor breaches the agreement. Enditem

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