A partnership between Macquarie Group’s Green Investment Group and the UK Government is planning to invest up to £30m (€45.7m) to support an affordable housing fund in Kenya.

UK Climate Investments (UKCI) said the capital commitment to the locally managed strategy targeting $80-250m of investor commitments, is intended to sponsor the construction and development of 10,000 energy and water-efficient homes in Kenya.

UKCI’s commitment will help address a critical shortage of affordable housing in Nairobi and contribute to the country’s goal of building 500,000 new affordable homes by 2022.

Richard Abel, managing director of UK Climate Investments, said: “As Kenya’s urban population grows, the need for new affordable housing has never been greater.

“The commitment we have announced today represents an exciting opportunity to help address this challenge – financing the construction of new affordable homes whilst showcasing how more sustainable building design can help tackle the effects of climate change.”

Jane Marriott, British High Commissioner to Kenya, said: “The UK is proud to partner with Kenya to tackle the pressing challenges of climate change and affordable housing.”

Marriott said UKCI’s £30m ion anchor investment will help build affordable, climate-friendly homes and promote green building standards in Kenya.

UKCI is a £200m pilot venture between Green Investment Group and the UK Government’s Department for Business, Energy and Industrial Strategy.

The venture – managed by Macquarie Infrastructure and Real Assets – invests in India and sub-Saharan Africa.