NSSF to build new estate in Mavoko

Updated Wednesday, September 26 2012 at 00:00 GMT+3

By Allan Olingo
The National Social Security Fund (NSSF) is planning to build 30,000 low-cost houses, which will sit on 960 acres in Mavoko Municipality, Machakos County, to tap growing returns from the property market.
In a speech read on his behalf by Finance Minister Njeru Githae at NSSF’s first AGM in 47 years, President 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’s statement.

Partners sought
NSSF is yet to give time lines or value of the project, although NSSF acting Managing Trustee Tom Odongo told journalists that the fund was seeking joint venture partners willing to invest in the Kenyan 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,” said Odongo.

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.
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, all in Nairobi.