Stanbic Bank Kenya Lends US$ 21M for Tatu City Housing & Infrastructure

: Stanbic Kenya’s Sh3bn loan supports Tatu City’s growth, funding affordable housing and infrastructure in this visionary urban development near Nairobi.

In a significant boost for Kenya’s real estate and urban planning sectors, Stanbic Bank Kenya announced a Sh3 billion ( US$ 21 million) loan to support a major residential and commercial project at Tatu City, a mixed-use development located on the outskirts of Nairobi. 

The deal, confirmed on November 10, 2024, marks another milestone for Stanbic in expanding financing within Kenya’s property market and infrastructure development.

Stanbic Bank Kenya CEO Dr.Joshua Oigara commented, “This loan aligns with our commitment to catalyse sustainable development across Kenya’s urban landscapes. Tatu City is transforming the concept of city living in Kenya, and we’re proud to contribute to making this vision a reality.”

                 A Decade-Long Vision for a Modern City

Tatu City, situated in Ruiru, Kiambu County, has been one of Kenya’s most ambitious real estate projects since it was conceptualised in 2010 by Rendeavour, a private real estate developer with a vision of creating modern, sustainable cities across Africa.

 The project covers over 5,000 acres and is designed as a self-sufficient, fully integrated urban hub that will offer residential housing, schools, healthcare facilities, offices, retail areas, and light industrial zones.

While initial construction phases at Tatu City focused on residential housing and the establishment of a central business district, the development has gradually expanded to include schools, parks, shopping centres, and medical facilities.

 By the end of 2023, Tatu City was already home to more than 5,000 residents, with expectations to house over 100,000 people in the coming years.

Stephen Jennings, Founder and CEO of Rendeavour, explained, “Our vision with Tatu City has always been to create a dynamic city that can sustainably serve the needs of Kenyans. It’s not just about building homes; it’s about creating jobs, offering high-quality social amenities, and supporting a new model of urban living.”

               Allocation of the Ksh 3 Billion Loan

Stanbic’s Sh3 billion financing will be directed toward building essential infrastructure within the Tatu City development, including enhanced road networks, energy systems, and water and sanitation facilities.

 This infusion will also support affordable housing units, a crucial component of the project. “Access to quality, affordable housing is critical for sustainable urban development,” Dr Oigara emphasised. “This funding will go toward ensuring Tatu City meets this need while prioritising infrastructure that sustains its community and growth.”

                               Growth in the Real Estate Sector

The partnership between Stanbic Kenya and Tatu City is emblematic of Kenya’s broader real estate trends.

 According to the Kenya National Bureau of Statistics, the real estate sector contributed approximately 9.2% to Kenya’s GDP in 2023.

 The industry has increasingly attracted local and international investment, driven by rising urbanisation rates and a growing middle class.

However, the real estate sector faces challenges, particularly with high financing costs and regulatory complexities.

 Tatu City, however, has managed to attract steady financing due to its alignment with government priorities, such as affordable housing and sustainable urban development.

The project’s model also resonates with the Big Four Agenda introduced by former President Uhuru Kenyatta in 2017, which included affordable housing as a key priority. 

Today, President William Ruto’s administration continues to emphasize affordable housing, aligning with Kenya’s Vision 2030 to create urban spaces that meet modern-day demands.

 In a recent statement, Treasury Secretary Njuguna Ndung’u acknowledged, “Projects like Tatu City not only fulfil the housing goals of Vision 2030 but also contribute significantly to job creation, economic growth, and quality of life improvements.”

     Stanbic’s Commitment to Kenyan Development

Stanbic Bank Kenya has been proactive in financing transformative projects across sectors.

 In 2022, the bank announced a Sh5.2 billion loan for Stanbic Group’s capital boost from the German Development Finance Institution (DEG). 

The funds, aimed at strengthening Stanbic’s capacity to finance large-scale infrastructure and development projects in Kenya, reflect the bank’s focus on sectors poised for sustainable growth.

“As a bank, we are always looking for partnerships that create long-lasting impacts. We don’t just fund projects; we fund legacies,” said Mudiwa, emphasizing Stanbic’s goal to drive meaningful progress in key economic sectors.

                                     Looking Ahead

The collaboration between Stanbic and Tatu City not only marks a critical advancement for the project but also signals confidence in Kenya’s real estate market amidst the country’s ambitious growth agenda. With key infrastructure in place, Tatu City is on track to meet its projected population goal within the next decade, offering a glimpse into the future of urban living in Kenya.

As Stanbic’s investment paves the way for enhanced infrastructure and housing, the bank’s partnership with Tatu City highlights the potential for similar initiatives to address urban challenges, demonstrating how public-private cooperation can be instrumental in building Kenya’s cities of tomorrow.