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.
The collective scheme shall be managed by Cytonn Asset Managers Limited (CAML), the regulated affiliate of Cytonn Investments, Cytonn Asset Managers.
Cytonn CEO, Edwin H. Dande said, “The Cytonn High Yield Fund allows another avenue for the private sector to bring regulated capital towards the development of low to mid-income housing. Therefore, we believe the fund is in line with the government’s agenda of attaining affordable housing by 2020. Driven by such factors we asked ourselves, ‘How can we bridge these challenges and provide affordable mixed-use developments?’ CHYF is our solution.”
Victor Odendo, the Principal Officer at CAML, explained that “The investment objective of CHYF is to obtain a high level of current income while protecting investors’ capital.” Victor further explained that 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.
Dr. Edward Odundo, the Chairman, East Africa Forum for Alternative Investments said “Housing plays a key socio-economic role and represents one of the main sources of wealth in Kenya. Against the backdrop of rapid urbanization putting pressure on housing delivery systems, many first-time home buyers will not be able to afford formal housing without proper housing finance solutions. This puts the issue of housing finance at the forefront of the country’s development agenda and am glad that Cytonn is taking the necessary steps to provide a solution”.
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.
