Kenya’s defense ministry has signed a public-private partnership (PPP) agreement with China Railway Engineering Group (CREG) to build affordable housing for members of the Kenya Defence Forces (KDF) in Kenya.

The primary objective is to alleviate the housing shortage for military personnel, and the project will be executed in multiple phases. In the initial phase, 2,340 residential units will be developed, with a total estimated built-up area of 104,125 square meters(m2), along with necessary infrastructure and amenities for use by KDF non-commissioned officers (NCOs). The project will follow a build-lease-transfer (BLT) contract model, where CREG will lease the project sites from KDF, construct the residential units, and subsequently lease them back to the defense ministry for a specified term. Upon the expiration of the lease, the ministry's lease payments will conclude, and the lease arrangement will come to an end. The KES 7.5 billion (US$46 million) KDF housing PPP initiative encompasses the construction of affordable housing and complementary support facilities for military personnel at five locations: 

1. Roysambu Site: Situated along the Nairobi-Thika highway, approximately 12km from the central business district of Nairobi, the Roysambu project site spans 15 acres. It is slated for the construction of 500 residential units, with an estimated built-up area of 42,000 m2. Infrastructure development encompasses internal roads, parking areas, and power connections, potentially involving the installation of a transformer and power reticulation, as well as sewer and water connections. The project also includes the construction of a water reservoir with a capacity for three days' consumption, along with plans for a kindergarten and a children's playground.
2. Kwambuzi-Nanyuki Site: Positioned in Laikipia County along the A2 highway, the Kwambuzi-Nanyuki site covers 300 acres. The project involves the construction of 737 residential units, with an estimated built-up area of 17,714 m2. Infrastructure requirements comprise internal roads, parking, a transformer with associated power supply reticulation, a new sewer line, and a 2km water pipeline. Additionally, plans include the construction of a kindergarten and a playground.
3. Nyali Site: Located along the A109 highway in Mombasa County, the Nyali site spans 10 acres and is designated for 368 residential units. The total built-up area is estimated at 15,931 m2. Project components include internal access roads, parking spaces, power reticulation to residential units, a biodigester for sewage treatment, a potable water supply line, and a water reservoir. The project scope also encompasses the construction of a kindergarten and a children's playground.
4. Lanet Site: The Lanet project site, situated off the A8 highway near Nakuru county, spans 21 acres. It is allocated for the construction of 125 residential units, with a total built-up area of 10,800 m2. Infrastructure requirements encompass an internal road network, parking, power connection and reticulation, as well as sewer and water connections. Additionally, plans include the construction of a kindergarten and a children's playground.
5. Gilgil/Kenyatta Barracks Site: Located in Gilgil town off the A8 highway, the Gilgil/Kenyatta Barracks site is earmarked for 610 residential units across 200 acres, with a total built-up area of 17,500 m2. Infrastructure needs encompass an internal road network, parking, power connection and reticulation, as well as sewer and water connections.