IHS Kenya breaks ground on KSh1.8bn, 406-unit rental project at Tatu City

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International Housing Solutions (IHS) Kenya has started construction of Muzi Enzi, a KSh1.8 billion rental housing development of 406 apartments at Tatu City in Ruiru, Kiambu County, betting that workers in the fast-growing satellite city will pay to live close to their jobs.

The developer broke ground on the project on October 7. It is IHS Kenya’s first purpose-built rental scheme at Tatu City and, according to the company, the first apartment project there designed specifically for the affordable housing segment. First tenants are expected to move in during 2028.

What is being built

Muzi Enzi will have 238 one-bedroom units of about 40 square metres and 168 two-bedroom units of about 60 square metres, set on a fully serviced 2.5-acre plot. The project is financed through the IHS Kenya Green Housing Fund, and IHS Kenya will manage the block once it is complete rather than sell the units.

Every unit is set to receive IFC EDGE certification on completion. EDGE is a green building standard run by the International Finance Corporation that rates homes on lower energy and water use, which the developer says will translate into lower monthly utility bills for tenants.

IHS Kenya expects the project to create about 500 direct and 1,500 indirect jobs across construction and operations, with work going to Kenyan contractors, suppliers and property staff.

Betting on Tatu City’s growth

Tatu City, developed by Rendeavour on 5,000 acres just outside Nairobi, says more than 35,000 people now live, work, study or spend time there every day, and that this number is growing by about 40% a year. Many of those daily users are employees of companies based in the city’s industrial and commercial zones.

“Tatu City is already home to more than 7,000 residents, and that number is expected to triple over the next five years. We therefore anticipate sustained demand for quality, affordable housing close to where people work,” said Kioi Wambaa, managing director of IHS Kenya.

Wambaa said the project is part of a wider plan to build an institutional rental market that Kenya does not yet have. “This is about bringing long-term institutional capital into Kenyan affordable housing — professionally managed, green from the ground up, and priced for the people who keep Tatu City running,” he said.

IHS Kenya has already delivered two affordable housing projects in Tatu City, Tatu Central and Kibanda. Muzi Enzi is the first phase of a planned neighbourhood of close to 1,000 homes. A neighbouring 540-unit development for sale, Muzi Stani, could launch as early as January 2027.

Private capital and the housing gap

Kenya’s housing deficit is estimated at more than two million units, with the shortfall sharpest in homes that lower- and middle-income earners can afford. Most new supply has come either from the government’s own programme, such as the Pioneer estate in Eldoret handed over this weekend, or from developers who build to sell, like the 748-unit tower project planned for Parklands.

Large, professionally managed rental blocks owned by funds remain rare in Kenya, where most tenants rent from individual landlords. Muzi Enzi’s rents have not been announced. How they compare with the wider market, where house prices have kept rising, will show whether the model works for the entry- and mid-level workers it targets.

Buyers who would rather own than rent can read our guide on how to apply for affordable housing in Kenya, while landlords can check how rental income tax is filed on iTax.