Cytonn Investments is seeking to raise at least 30 billion shillings to fund construction of 6000 mid to low income houses through its regulated scheme dubbed Cytonn High Yield Fund.
Housing Principal Secretary Charles Hinga has backed the fund as the right impetus needed to boost private sector investments to accelerate affordable housing project.
Housing plays a key socio-economic role, in any society.
However, against the backdrop of rapid urbanization putting pressure on housing delivery systems, many first-time home buyers are not be able to afford formal housing, as evidenced by mushrooming of slums within urban settlements.
Cytonn Asset Managers Limited through its Collective Investment Scheme dubbed Cytonn High Yield Fund seeks to provide a solution to the housing deficit.
The Kshs 30bn fund according to Cytonn shall be used for the development of 6,000 mid to low-income houses.
Housing and Urban Development Principal Secretary Charles Hinga says this will allow another avenue for the private sector to bring regulated capital towards the development of affordable housing units.
Stakeholders have expressed optimism in the specialized Collective Investment Scheme, which has a high allocation towards investment in real estate assets.
For investors, the scheme has shown ability to deliver higher returns than traditionally assets.
The fund’s objective will be to outperform the income yield available from commercial banks by investing in alternative asset classes such as real estate.
This comes in the wake of renewed efforts by government to attract investors from the private sector to its ambitious affordable housing project with two years to go before deadline.