Fund unveils housing scheme

Kenya: Alexander Forbes Retirement Fund has commenced a new housing scheme that will see its members own houses at its property development in Kitengela, Kajiado County. The Riverine Estate is based on 30 acre prime development bordered by a seasonal river.

“This lifestyle development is situated on the outskirts of Nairobi far enough from the hustle and bustle of the city’s daily rigours, but close enough to the city centre,” said Alexander Forbes Retirement Fund Board of Trustees chairperson Lucy Kambuni.

The estate will be an oasis of 211 lush, high quality maisonettes and apartments in a gated community. The gated community will feature a nursery school, several playgrounds, a community centre that allows for a swimming pool and meeting halls and fully-fitted gym.

There will also be a state-of-the-art commercial centre or shopping mall, adjacent to the road frontage of the Nairobi Namanga highway. The property development has been designed to ensure the fund receives optimal investment returns through capital appreciation and rental yield.

Addressing fund members during its 7th Annual General Meeting at a Nairobi hotel, Ms Kambuni said quality affordable housing continues to be one of the challenges facing members in retirement with less than 5 per cent of retirees over the age of 55 years, having a home of their own to retire to.

“Old age poverty has become the norm and after 30-40 years of hard work, it is pitiful to have senior members of our society live like paupers,” she added. James Olubayi, Executive Director and Trustee said the fund has partnered with a strategic partner for concessionary mortgage rates for its members to enable them purchase the houses. Members can utilise up to 60 per cent of their retirement benefit for purposes of securing a mortgage, she added. “This way, they can borrow up to 105 per cent of the value of the property and not have to worry about the 15 per cent capital required to pay the deposit, and also to meet other incidental expenses such as legal fees, commitment fees and valuation fees,” he said.

The Divisional Head of Umbrella & Retail Solutions at Alexander Forbes, Angela Okinda who heads the management of the fund noted that the launch of the mortgage facility was a great milestone. “For the everyday Kenyan, mobilisation of capital to undertake the purchase of a property is quite an uphill task,” Okinda said.