Build 2 Own
Construction is a significant contributor to the Kenyan economy, generating over $7 billion annually and employing more than 200,000 people. However, a majority of construction workers in Kenya are undervalued and underpaid, receiving 80% less than global labour standards. This has led to a situation where a majority of construction workers live in informal settlements, lacking access to affordable housing and basic amenities.
The bottom 20% of the population in Kenya faces significant challenges when it comes to home ownership. These challenges include limited financial resources, a lack of access to credit facilities, and discrimination in the housing market. These challenges are compounded by income inequality and poverty rates, which further limit access to home financing mechanisms.
Majority of the construction workers also lack fit-for-purpose savings vehicles for home purchase. They are unable to raise the home deposit & ensuing legal costs and Lack understanding of the financial and legal dynamics of the home ownership journey lack understanding of the financial and legal dynamics of the home ownership journey.
Additionally, the traditional credit scoring systems used by banks and financial institutions in Kenya do not take into account the financial dynamics of the informal economy. This creates a situation where many low-income workers are excluded from the formal banking system, making it difficult for them to access financing for home ownership.
Build 2 Own (B2O) is a mobile application that provides a fit - for-purpose platform for women in construction to save towards the deposit to buy a home, and provides financial and legal training for home ownership.
Using the data collected over the years Build 2 Own will develop a credit score and after 3 years connect and endorse beneficiaries to developers & end- user finance providers.
The Build 2 Own (B2O) app enables female construction workers to save a portion of their income towards the purchase of a home. The savings platform provides training and education to the workers on the financial and legal dynamics of home ownership, making them more informed about the home ownership journey.
Because of how undervalued and underpaid construction workers are and to encourage savings culture we also offer a sweat equity grant that matches the beneficiaries savings and cover the prohibitive legal costs at the time of home purchase.
The target population for Build 2 Own are female construction workers in Kenya, particularly those in the bottom 20% who currently live in informal settlements and lack access to affordable and secure housing.
The female construction workers are underserved in several ways. Firstly, they lack fit-for-purpose savings vehicles for home purchase, making it difficult for them to raise the home deposit and ensuing legal costs. Secondly, they lack understanding of the financial and legal dynamics of the home ownership journey, making it challenging for them to navigate the complex process of purchasing a home. Thirdly, they often face discriminatory practices in the industry, making it difficult for them to advance their careers and earn a fair wage.
The B2O solution directly addresses the needs of these underserved female construction workers by providing a tech-based, fit-for-purpose home ownership savings platform that helps them save towards the purchase of a home. Additionally, the platform provides financial and legal training, making them more informed about the home ownership journey and better equipped to navigate the process. The evidence-based credit score and sweat equity subsidy provide a viable alternative for financing, making it possible for female construction workers to purchase a home despite the lack of traditional financing options.
The founders, Etta Madete, Joanphena Nyarigoti, and Esther Segero, have extensive experience in construction, real estate, and engineering, and have a deep understanding of the needs of their target population. Etta Madete, the Co-founder and Head of Growth and Research, has over 7 years of experience in construction and real estate. She is a registered architect with the Board of Registration of Architects and Quantity Surveyors (BORAQS) and is an EDGE Expert. Etta is also a lecturer at the University of Nairobi and an Aspen Senior Fellow. She holds a Master's degree in Sustainable Design and is currently pursuing a Master's in Real Estate at Harvard Graduate School of Design (GSD). With her expertise in sustainable design and real estate, she is well-positioned to provide data-driven solutions to the affordable housing crisis.
Esther Segero, the Co-founder and Executive Director, has over 10 years of experience in engineering and construction. She is a registered structural engineer with the Engineers Board of Kenya (EBK) and holds an MBA in Finance. Esther is a Young African Leadership Initiative Fellow and the President of Women in Real Estate (WIRE). She has a passion for impact work and has worked with the largest number of female artisans in Kenya. Esther's expertise in engineering and finance makes her an integral part of the team, particularly in the area of project management.
Joanphena Nyarigoti, the Co-founder and Operations Director, holds a degree in Architecture and has extensive experience in operations management. She has previously served as the Operations Lead for Building in Kenya, the Operations Lead for the Eisenhower Fellowships Kenya, and the Operations Manager for MKB Collective. Joanphena has a deep understanding of the challenges faced by women in construction and is committed to providing solutions that make homeownership more accessible to them.
But beyond our professional credentials, we are deeply connected to the communities we are serving. As women in the construction and engineering industries, we understand firsthand the challenges and barriers that female construction workers face in accessing affordable housing and achieving homeownership. We have engaged with these communities through outreach and research, conducting interviews and surveys to better understand their needs and experiences.
Build 2 Own has also partnered with Rent score, a real estate technology company based in Nairobi, Kenya. Their platform provides rental housing data and analytics to both landlords and tenants to help streamline the rental process.
As a tech partner for Build 2 Own (B2O), RentScore provides the platform and expertise necessary to facilitate B2O's mission of empowering female construction workers to become homeowners. RentScore's technology helps to collect and analyse data to create credit scores for B2O beneficiaries, while also providing a user-friendly platform for them to save towards the purchase of a home. By partnering with RentScore, B2O can leverage cutting-edge real estate technology to better serve their beneficiaries and streamline the home ownership process.
- Provide new ways to accurately assess credit-worthiness of MSMEs and individuals, including methods that reduce bias against borrowers who have traditionally lacked equitable access to credit
- Kenya
- Prototype: A venture or organization building and testing its product, service, or business model, but which is not yet serving anyone
As a prototype, Build2Own is currently in the process of building and testing an app that collects real data and provides realistic and data-driven solutions for homeownership. We have conducted a detailed market study and identified 10 beneficiaries for our pilot program.
Our goal is to build and test the app with these beneficiaries, and produce evidence-based learnings that can be used for replication, scale, and future fundraising rounds. This prototype will help us refine our approach and ensure that we are providing the most effective solutions for those who need it most.
Our pilot program aims to fund 10 beneficiaries
Build 2 Own aims to provide a viable alternative for financing home ownership for the bottom 20% in Kenya, who currently lack access to affordable and secure housing.
B2O's solution is technology-based and requires expertise in software development, data analysis, and digital marketing. We hope that Solve can connect us with technical partners who can provide us with the necessary expertise to build and scale our platform
Our solution also requires significant upfront investment in technology development, market research, and pilot testing. We hope that Solve can provide monetary support to help us develop and test our solution.
We are seeking a grant of $289,574 to support the development and testing of our Build 2 Own app, as well as covering the operational costs for our pilot program and providing a Sweat Equity Subsidy to 10 selected beneficiaries.
- Financial (e.g. accounting practices, pitching to investors)
- Technology (e.g. software or hardware, web development/design)
Build 2 Own focuses on a previously ignored segment of the population, the bottom 20%, who have limited access to homeownership, credit facilities, and financial and legal resources. It is the first of its kind to target female construction workers in Kenya. Women in the construction industry have traditionally been underrepresented and have limited access to financing and homeownership. The project's focus on this group will not only address their specific needs but also contribute to increasing gender diversity in the construction sector.
Build 2 Own also leverages technology to create a fit-for-purpose home ownership savings platform that pays the undervalued sweat equity earned by skilled female construction workers towards purchasing a home in the project they are building. This is a significant departure from traditional lending practices. By incorporating sweat equity grants into its financing model, the project incentivises workers to save towards their homes
B2O's solution also provides financial and legal home ownership training to female construction workers. This is a significantly improved way of addressing the problem, as it not only helps female construction workers to purchase a home but also equips them with the necessary skills and knowledge to navigate the home ownership journey successfully.
Finally B2O's solution provides an evidence-based credit score and sweat equity subsidy (savings match fund), which is a new and innovative way of addressing the problem of alternative forms of credit scoring for the informal economy.
In the next year Build 2 Own aims to run its pilot program. Our objectives include completing detailed market studies, setting up the company, building and testing the B2O app, selecting 10 female construction workers to participate in the pilot program, delivering financial and legal home ownership training to the selected participants, launching the savings platform and savings match fund, and producing evidence-based learnings for replication, scale, and future fundraising rounds.
In the long run , Build 2 Own aims to:
- Enable 200 female construction workers to become potential homeowners by 2030 through the savings platform and savings match fund
- Develop a sustainable subsidy model for government and other NGOs to replicate and scale the B2O solution to benefit 500,000 beneficiaries
- Expand the solution to include male construction workers and other underserved populations in the construction industry
- Build partnerships with stakeholders in the construction industry to increase awareness and adoption of B2O's solution
- Contribute to the empowerment of skilled construction workers, particularly women, and promote gender equality in the construction industry
- 1. No Poverty
- 5. Gender Equality
- 8. Decent Work and Economic Growth
To measure progress towards the impact goals of Build to Own, the project will use the following indicators:
1. Successful completion of B2O app development and testing
2. Selection of female construction workers for the pilot program
3. Completion of financial and legal home ownership training for pilot program participants
4. Launch and utilisation of the savings platform and savings match fund
5.Number of female construction workers who have become potential homeowners through the savings platform and savings match fund
Additionally, the project will provide qualitative data such as case studies and beneficiary testimonials to highlight the project's success stories and its contribution to promoting gender diversity and empowering female construction workers.
Theory of Change:
Problem: Limited access to affordable housing for female construction workers in the informal sector
Solution:
B2O aims to provides financial literacy training, savings platform, and matching funds to enable female construction workers to become homeowners
Impact:
Improved access to affordable housing for female construction workers, and increased financial inclusion and empowerment
Immediate Outputs:
-Identification and selection of female construction workers for the pilot program
-Provision of financial and legal home ownership training to selected participants
Launch of the savings platform and savings match fund
Long-term Outcomes:
-Increased number of female construction workers who become homeowners
-Development of a sustainable subsidy model for replication and scale
-Increased financial inclusion and empowerment of female construction workers
-Greater gender equality in the construction industry
Build2Own is still in the process of building and testing its app prototype but here is the proposed model
B2O beneficiary conditions/controls
Beneficiary can benefit from one B20 sweat equity subsidy in their lifetime
Beneficiary and family must live in home for minimum 3 years
- A new business model or process that relies on technology to be successful
- Software and Mobile Applications
- Kenya
- Kenya
- Not registered as any organization
Build2Own is currently incorporating diversity, equity, and inclusivity into our work by actively seeking and engaging with diverse stakeholders, conducting outreach to underrepresented communities, and ensuring that our team and partners are inclusive and representative. We are also continuously gathering and analysing data to ensure that our solutions are equitable and accessible to all, and incorporating feedback from diverse perspectives to improve our impact.
Build 2 Own's business model is centered around providing a mobile application that enables women in construction to save towards the purchase of a home. We also provide financial and legal training to the workers to help them navigate the home ownership journey. Our platform creates value for our beneficiaries by providing a safe and secure way to save towards their dream of owning a home while also educating them on the process. Additionally, we offer a sweat equity grant that matches the beneficiary's savings and covers the legal costs at the time of home purchase, making it more affordable and accessible for them. Our business model aims to support the financial sustainability of the platform through potential future partnerships with developers and end-user finance providers.
B2O beneficiary conditions/controls
Beneficiary can benefit from one B20 sweat equity subsidy in their lifetime
Beneficiary and family must live in home for minimum 3 years
- Individual consumers or stakeholders (B2C)
Our plan involves a combination of revenue streams. We will seek sustained donations and grants from foundations, impact investors and other philanthropic sources to cover our initial operating costs and fund the pilot program. In the long term, we plan to generate revenue by selling our data-driven homeownership solutions to low-income earners in emerging markets. We will also explore opportunities for service contracts with governments to provide housing solutions to their citizens. Finally, we plan to raise investment capital from impact investors who share our vision of providing affordable and sustainable homeownership solutions to low-income earners.
As we are still in the prototype stage, we have not yet generated revenue or raised investment funding. However, we have applied for several grants and are actively seeking additional funding opportunities to support the development and launch of the Build 2 Own app. We have currently partnered with a few organisations such as Rentscore for developing the app and are continuing to explore potential partnerships with other organisations that share our vision and values to further expand our reach and impact.
We plan to use sweat equity subsidies to provide assistance to our pilot beneficiaries in the form of training and mentorship, which will help them build capacity and acquire the skills needed to participate in the construction of their own homes. This is important because many low-income households lack the financial means to purchase a home outright, so by providing them with the necessary skills and support to build their own homes, we are enabling them to achieve homeownership in a more sustainable and equitable way.