Housing Chronicles in Huruma Slum Upgrading Programme: Lessons in Cost Tracking & Scaling Social Housing

The Muungano wa Ghetto housing initiative originated from Muungano wa Wanavijiji’s efforts in the 1990s to mobilize slum residents for improved living conditions. In 2003, Ghetto was designated for upgrading, and a Memorandum of Understanding was signed between Nairobi County Government and Muungano wa Ghetto, granting land to the community at no cost. In return, the residents of Huruma were expected to redevelop the area.

Initially, the community constructed basic starter housing shells—without doors, windows, plumbing, wiring, or plastering—costing Ksh 160,000 per unit. They later transitioned to more complete starter units with some provisions, priced at Ksh 250,000. To accelerate housing availability and lower the financial barrier for entry, the project team shifted their approach from constructing complete units to focusing solely on laying foundations at a reduced cost of Ksh 50,000–60,000. This made the 20% deposit more accessible, allowing more residents to start their housing journey.

By the time the foundations were completed, the COVID-19 outbreak disrupted financing, leaving Ghetto Cooperative members struggling to progress beyond the foundation stage. For nearly four years, construction stalled, and even those with starter units faced delays in completing their first floors. Of the 550 planned houses to be built in the entire settlement, only 100 were built to varying levels of completion between 2011 and 2020.

In 2024, Akiba Mashinani Trust (AMT) secured funding from the Livelihood Impact Fund (LIF), with support from FSD Kenya, to pilot a housing project in Ghetto. The pilot aimed to assess the feasibility of increased investment by LIF and other investors, while testing scalable and sustainable housing delivery models. The project also provided valuable insights into financing, cost management, and stakeholder engagement.

Given the time gap since the last starter house was built, LIF needed to reassess construction costs. To achieve this, CAHF, on behalf of LIF, commissioned a feasibility study. A quantity surveying (QS) firm estimated the cost of a two-bedroom house at Ksh 1,019,642—almost 2.5 times higher than Muungano wa Ghetto’s estimate of Ksh 429,630.

AMT and Muungano wa Ghetto contested the high estimate, citing cost-saving community practices such as:
• Self-casting of waffle slabs and beams to reduce steel and labor costs.
• Shared staircases between two houses, distributing costs.
• Cluster-based foundation work for 20–30 units, lowering individual costs.

However, rising material and labour costs had not been factored into Muungano’s estimates. Cement prices had risen from Ksh 500 to Ksh 800 per bag, while skilled labour wages had increased from Ksh 800 to Ksh 1,200–1,500 per day. To address cost discrepancies and optimize investment, LIF, AMT, CAHF, and the Ghetto Cooperative agreed to shift to a ground-plus-one housing design instead of a single-floor starter unit to optimize cost estimation and construction methodologies.

Pilot Project Design and Construction 

The pilot project involved constructing four units which included:

• Two smaller houses, each with two rooms (14.29 m² per room).
• Two larger houses, each with two rooms (21.16 m² per room).
• All units are connected by a shared wall
• An external shared staircase frees up interior space, allowing beneficiaries to occupy one unit while potentially renting out the upper unit to support loan repayments.
• Balcony areas enhance natural lighting and ventilation, improving the overall living environment.
• Due to space constraints, the two smaller two-bedroom units share a single bathroom, while each room in the larger two-bedroom units has its own bathroom.

The project was completed in 35 weeks, with CAHF tracking and evaluating progress to inform future investments. Construction was carried out by the Ghetto community under the supervision of Muungano wa Ghetto’s community-led committee. A site manager, supported by clerks of works, oversaw construction activities. Throughout the 35-week period, the project monitored cost efficiencies, construction methodologies, and scalability potential.

The total construction cost for the four housing units was Ksh 2,853,929, translating to an average of Ksh 717,485 per two-bedroom house and Ksh 16,491 per square meter.

Outcome of the Pilot Houses    

Summary Cost Tracking for the 4 House Units

Breakdown of Costs per House Categorized by Workstreams

NB: Labour and material costs are included in each of the workstreams mentioned below.

Note: Interior works include plumbing, plastering, purchase and installation of windows and doors, electrical works, and casting of kitchen tops and slab.  Exterior finishes include façade rendering, installation of inspection chambers and connection to the manhole for the large houses.

For a detailed account of the methodology – please download the report and the financial model below that has the costs recorded daily and the financial feasibility.