Cytonn Launches Home Ownership Savings Platform With 11% p.a Target Yield

Cytonn Launches Home Ownership Savings platform

Ongoing construction of Applewood, Cytonn Real Estates's Kshs 2.5 billion residential development in Miotoni Road - Karen.

  • CAHIP funds will be invested in CMMF through a partnership between CAHIP & CMMF
  • The minimum initial investment to CAHIP is Kshs 1,000
  • Withdrawal is to buy a house, construct a house or buy land for construction and evidence needs to be provided

Realtor Cytonn Investments has launched the first Home Ownership Savings platform within a regulated collective investment scheme, Cytonn Affordable Housing Investment Plan (CAHIP).

Cytonn Investments who has structured CAHIP has partnered with the Cytonn Money Markey Fund managed by Cytonn Asset Managers Limited, with target yields averaging 11% per annum, targets over 10,000 individuals in the plan.

Cytonn Chief Operating Officer, Shiv Arora said, “CAHIP will provide individuals saving towards a home purchase with an attractive investment proposition, compared to those currently available in the market, and thus enhance their ability to purchase or construct a residential house.”

Benefits to Potential Home Buyers 

 (i) accessing a flexible platform for savings towards home purchase, 

(ii) tax advantages with a reduction of their taxable income to a maximum of KSh8,000 per month or KSh96,000 per annum, in addition to a tax exemption on interest income earned by the depositor on a HOSP deposit of up to a maximum of Sh3.0 million, 

(iii) relatively high returns compared to the market, with a target yield of 11.0 percent, and (iv) a relatively low initial investment of Sh1,000 and minimum monthly contribution of KSh1,000.

CAHIP provides a platform that will enable individuals to develop a credit profile, as the savings made by a subscriber act as proof to a financial institution of their creditworthiness.

“We expect it to complement the government’s efforts in driving the agenda on housing and we expect the flexible platform to enable more Kenyans especially those in the low and middle-income bracket save towards housing given the minimal requirements,” said Beatrice Mwangi, Research Analyst at Cytonn.

CAHIP – How to Invest

  1. Fill in CAHIP Form
  2. Pay Ksh 1000  joining fee:  An individual can either; (i) pay Kshs 1,000 to join CAHIP, or (ii) come for a Kshs 1,000 consultation, if they join, Cytonn shall credit towards their CAHIP joining fee
  3.  Make monthly remittances – This can be made through; Mpesa, cheque, Electronic Fund Transfer (EFT), Pesa Link or Real Time Gross Settlement (RTGS). This will be to Cytonn Money Market Fund (CMMF) where the client shall also open an account

In 2019, Cytonn Investments launched a Collective Investment Scheme (CIS) Cytonn High Yield Fund that gives a 15 percent rate of return annually. This was Kenya’s first regulated fund seeking to raise KSh30 billion for constructing 6,000 housing units under the Affordable Housing Programme.