This archive report was first published on 11 December 2019.
On December 11, 2019, Cytonn Chief Executive Edwin Dande announced plans to invest over Sh30 billion in the government's affordable housing plan.
The investment firm aims to set up at least 6,000 units using funds raised by its new savings product, Cytonn High Yield Fund (CHYF).
According to Mr. Dande, CHYF targets to raise at least Sh30 billion from individuals, which would later be deployed to the affordable housing programme.
He added that Kenyans could activate their accounts with at least Sh1 million, from which they could expect a 15 per cent return on investment.
Mr. Dande noted that CHYF has an exemption to invest more than 80 per cent of the funds into real estate, courtesy of friendly regulators.
The areas targeted for the new projects include Ruai and Ruiru as well as Athi River, with houses costing not more than Sh3 million once complete.
Permanent Secretary for Housing and Urban Development Charles Hinga said the State has lined up a host of incentives to facilitate the affordable housing agenda.
Mr. Hinga added that the ministry has spent the last 20 months coming up with better investment guidelines together with various incentives to facilitate the affordable housing agenda.
He also mentioned that the private sector is welcome to take advantage of various tax incentives such as VAT, withholding and railway development levy that have since been removed from materials aimed at providing affordable housing.
Edward Odundo, chairman of East African Forum for Alternative Investments, said collective investment schemes like Cytonn's were the way for the majority of Kenyans who cannot afford mortgages.
