Mizizi Africa Homes has reported a 50% investment increase in its affordable homes project by Kenyans living abroad and foreign investors in three months to September 2020.
The real estate firm attributes the rise in uptake to global political events last year, technology, and improved transparency on local projects in Kenya.
“Since July 2020 we have been recording higher numbers of Kenyans from the diaspora markets seeking information and investing in affordable housing units. Our commitment to transparency about projects through a customer-centered approach that gives updates almost in real-time has helped many make the decision to invest with us,” said Mizizi Africa Homes Chief Executive Officer, George Mburu.
Data from the Central Bank of Kenya shows that Diaspora Remittances increased to Kshs. 331 billion in 12 months to November 2020 compared to Kshs. 304 billion a similar review period to November 2019.
It shows remittances rose by Kshs. 27 billion despite the COVID-19 pandemic that ravaged economies across the World.
“Two months ago, Kenya unveiled its first licensed investment fund, the African Diaspora Asset Managers (ADAM) licensed by Capital Markets Authority, boosting confidence of Kenyans living abroad to place their investment through a safe and regulated platform,” Mburu added.
He went on, “We believe these new developments that address bottlenecks in diaspora investments are increasing the appetite for local investments.”
Financial analysts attribute the rise in diaspora remittances to political heat that characterised US Elections as among key reasons many Kenyans are opting to invest their savings back home.
Kenyans have over time now been using up to three-quarters of their diaspora remittances to meet daily basic needs including food, education, healthcare, and other expenses.
The low focus in investment projects like real estate, Mburu said, have for a long time now been hampered by a lack of information on projects, difficult and very strict procedures, as well as lack of formal channels that have bred serious trust issues.
According to the firm all of the developer’s seven housing projects have at least two Kenyan diaspora investors or a foreign direct investor purchasing a unit or more mostly for re-investment.
Mizizi Africa Homes has said foreign investors have snapped at least half of units in its fourth project, Hummingbird Estate that comprises 3-bedroomed houses.
The 18-units project located along Kenyatta road, off Thika road on exit 14, was launched mid-July 2020.