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Towards a Financing Mechanism for Slum Upgrading at Scale in Nairobi

2019 - Bridging the Affordability Gap


James Mutero and Mary Chege, et. al.




In 2017, the County Government of Nairobi declared Mukuru to be a Special Planning Area (SPA), paving the way for the preparation of an integrated Local Physical Development Plan (LPDP) for this large informal settlement in collaboration with its residents and partner organizations.

The SPA covers Mukuru Kwa Njenga, Mukuru Kwa Reuben and Viwandani which together accommodate around 300,000 low-income residents, many of them living in extreme income poverty.

Implementing this ambitious integrated plan will require finance for a wide range of infrastructure services and affordable housing as well as complementary financial interventions to support micro- and small enterprises.

This publication sets out a financing mechanism for the envisaged upgrading investments in informal settlements in Nairobi, pejoratively called “slums”. Mobilizing the vast amounts of capital required will face critical challenges, with affordability and land tenure at the forefront.

An important aspect of this report is how the upgrading of Mukuru and other informal settlements in Nairobi could be linked to these institutional innovations which seek to deliver infrastructure services and affordable housing at scale.

International experience on slum upgrading finance is examined early in the report in order to draw out general trends that provide a useful backdrop for Nairobi. The cases of India, Morocco and Egypt are set out and a general approach to slum upgrading finance presented.


Good Urban Governance Management von Stadt und Verwaltung Stadtsanierung Stadterneuerung Soziale Stadt Integrierte Stadtentwicklung Partizipation und Stadtplanung


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