Makasembo Estate Kisumu: Phase 3 Underway in Landmark LAPFUND Partnership

The Makasembo Estate Housing Project in Kisumu tells a story of urban renewal through targeted collaboration. It was conceived in 2021 when the Kisumu County Government joined forces with the Local Authorities Pension Fund, LAPFUND, to redevelop an 11.6-acre site in the city centre into a modern residential community.

LAPFUND took the lead on financing as a pension scheme focused on long-term investments that deliver returns for county employees and members. The county government contributed land and enabling support, creating a public-private partnership that bypassed heavy dependence on national exchequer funds. This model allowed the project to move from concept to construction relatively efficiently.

The vision centred on 1,870 housing units and around 1,754 parking spaces. Plans went beyond standard apartment blocks to create a mini-suburb with boreholes for water security, solar power installations, high-speed lifts, landscaped green spaces, children’s play areas, a nursery school, daycare facilities and ground-floor retail shops.

Phase 1 delivered 910 units and reached completion. President William Ruto commissioned the section in May 2025 with former Prime Minister Raila Odinga present. Phase 2 followed closely. Phase 3 broke ground around the same period last year and remains active with ongoing construction visible on site.

The partnership has kept local contractors, material suppliers and workers engaged throughout. Demand for cement, steel, finishes and related services has supported economic activity while new residents gradually populate the estate.

Located near Moi Stadium and Kisumu Polytechnic, the estate benefits from strong connectivity that appeals to both homeowners and investors. The mixed-use design blends residential, commercial and social amenities into a cohesive neighbourhood.

Security coordination through the State Department for Internal Security and National Administration has aided smooth implementation for this scale of urban development.

The LAPFUND funding approach proved effective in maintaining momentum across phases. It aligns with national pushes for innovative housing delivery and demonstrates how pension capital can drive tangible projects. Integration of solar and independent water systems adds layers of sustainability and resilience.

As Phase 3 progresses, the Makasembo story continues to unfold. What began as a 2021 concept on underutilised land has become a growing community that eases housing pressure in Kisumu. The project serves as a practical case study for other counties exploring similar partnerships.

Each phase builds on the original vision and reinforces the value of combining pension resources with local government facilitation. With construction activity ongoing, the estate edges closer to full realisation of its master plan.