London-based private equity firm Actis partnered with Indian construction company Shapoorji Pallonji Real Estate in 2019 to develop affordable housing for Kenya's middle-income population through a Sh12 billion ($120 million) joint venture targeting sub-Saharan Africa's underserved residential market.
Koome Gikunda, Actis' director, emphasized the need for institutional-quality home builders in African markets, stating, "Residential remains the largest real estate asset class globally. In many African markets, delivery is highly fragmented. There is a notable lack of institutional quality home builders with the expertise, capital, and consumer trust to address this opportunity at scale." The collaboration combines Shapoorji Pallonji's 153-year construction legacy with Actis' African investment experience to create scalable housing solutions.
David Morley, Actis' global real estate head, highlighted the firms' successful track record in India, where they delivered thousands of affordable, high-quality homes. The project aligns with Kenya's National Bureau of Statistics definition of the middle class, which includes households spending between Sh24,000 and Sh120,000 monthly. Market analysis from 2019 showed oversupply in upper-middle and luxury segments, while affordable housing remained critically underdeveloped.
Actis has previously developed major Nairobi projects, including the 47-acre Garden City Mall and a Sh54 billion business park for East African Breweries Limited. The firm also partnered with South Africa's Improvon Group on a 103-acre warehouse complex along Nairobi's Eastern Bypass to support intra-Africa trade growth.
