NSSF planning to build 30,000 houses in Mavoko

                                  
                             A housing development in Kisumu. Photo/Business Daily

The National Social Security Fund (NSSF) is planning to build 30,000 low-cost houses in Mavoko Municipality, Machakos County, to tap growing returns from the property market.

“We did an international tender last year, but our options are still open as we are yet to finalise the process. I cannot tell you how much it will cost at the moment,” Mr Odongo said.

The NSSF Mavoko housing project, which will sit on 960 acres, will greatly improve the profile of Machakos County that will also host the Sh800 billion Konza ICT Park.

In a speech read on his behalf by finance minister Njeru Githae at NSSF’s first AGM in 47 years, President Mwai Kibaki said the fund’s housing plan has been selected as one of the flagship projects under the Kenya Vision 2030.

“It is commendable that NSSF will shortly embark on developing 30,000 housing units, complete with infrastructure that is set to transform Mavoko Municipality into a city within a city,” said President Kibaki.

The government-backed workers’ retirement fund is yet to give time lines or value of the project, although NSSF Acting Managing Trustee Tom Odongo had earlier told journalists that the fund was seeking joint venture partners willing to invest in the Kenyan property market.

People familiar with the plan say the NSSF is looking for joint venture partners due to the huge financial requirement of the project and the need to meet the Retirement Benefit Authority’s (RBA) requirement capping real estate investments by pension scheme to 30 per cent of their assets.

“NSSF’s investment in property development is regulated by the RBA, which stipulates a maximum of 30 per cent of assets in real estate. If we were to embark on this project solely we would exceed the 30 per cent limit,” said a senior NSSF official on condition of anonymity.

Under the joint venture, the NSSF will provide land – which is valued at about Sh2 billion – and in return it will earn capital gains from the sale of the houses or earn rental income.

NSSF is a leading investor in the local property market – holding an investment portfolio worth billions of shillings in properties including the Social Security Building at Nairobi’s Community area, Bruce House, Hazina Trade Centre, NSSF House and the Mountain View estate in Kangemi.