Property firm Cytonn Investments banks on a Sh30 billion regulated fund it seeks to raise to finance construction of 6,000 housing units
The real estate Collective Investment Scheme (CIS) Cytonn High Yield Fund that gives a 15 percent rate of return annually requires investors to chip in a minimum of Sh1 million each as per Capital Markets Authority (CMA) regulations.
The Housing Ministry gave a thumbs up on the Cytonn’s venture that is now in its sixth month, even noting that Affordable Housing Programme has attracted more investors, both locally and internationally, who were willing to inject Sh2.2 trillion in the projects.
Charles Hinga, who is the PS for housing has said that the State had a lined up a host of incentives for it to be able to deliver its promise to more than 200,000 Kenyans in need of decent and affordable housing each year.
PS Hinga said Kenyans building first homes can also benefit from a monthly Sh9,000 home relief totalling Sh108,000 annually under the Housing Ownership Savings Plan, with developers being incentivised with off-site infrastructure, fast-tracked approvals, regulatory fees waiver and free land.
Cytonn CEO Edwin Dande, had revealed that areas targeted for their projects were Ruai and Ruiru as well as Athi River. The houses, he said, will cost not more than Sh3 million once complete.
Cytonn Asset Managers Ltd principal officer Victor Odendo said it had raised about Sh13 billion locally in the past year via their Cytonn high yield (10.4 billion), unit trusts (Sh700 million) and a further Sh2 billion via the Cytonn Money Market Fund.
The chairman of East African Forum for Alternative Investments, Edward Odundo said collective investment schemes like Cytonn’s were the way for the majority of Kenyans who cannot afford mortgages.
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