Housing Provision for Forcibly Displaced Persons in Kenya, Uganda and Ethiopia

Kenya, Uganda, and Ethiopia are home to over 7 million refugees, asylum seekers, and internally displaced persons. Across all three countries, more than 75% of refugees live in camps. In urban areas, most refugees live in rental housing, but rent is far from affordable and the quality of housing is low. Housing finance remains out of reach for most of the population, and even more so for forcibly displaced persons (FDPs).

To support Kenyan, Ugandan, and Ethiopian homeowners in developing rental housing for FDPs, the IFC is examining the potential for introducing a specialized lending product through financial institutions: Housing Microfinance for Forcibly Displaced People (HMF4FDP). This product intends to offer loans to homeowners and landlords specifically for home extensions and construction.

In collaboration with Pegasys and Triple Line, AHI conducted market assessments in all three countries and is assessing the feasibility of deploying this product. Given the lack of access to affordable financing for housing development in Kenya, Uganda, and Ethiopia, housing finance markets need to be strengthened first to allow for an effective deployment of such a housing microfinance product. 

If HMF4FDP is developed, nearly 600,000 FDPs across Kenya, Uganda, and Ethiopia could have access to improved rental housing; host communities will generate income through rental payments; and higher quality rental housing stock will be developed that would improve the overall rental market in each country, helping lower-income households access an affordable home.