During the past week, Stima Investment Cooperative, a local investments company, was appointed as the lead sales agent of Pangani Heights, one of the seven Nairobi Urban Regeneration Projects under the affordable housing initiative.
The development set on 5.2 acres along Ring Road Ngara, was launched in December 2018 and was awarded to Technofin Kenya as the lead developer.
From Cytonn Investments Weekly Report, the project construction is expected to begin in August 2019 and will consist of 1,434 units, comprising of social and low-cost units.
The social units will comprise of 25 SQM- 1-bed and 50 SQM- 2-bed units at 1 million shillings and 2.5 million shillings, respectively, translating to 45,000 shillings per SQM.
The low-cost units will comprise of 30 SQM- 1-bed, 40 SQM- 2-bed, 60 SQM- 3-bed and 90 SQM- 3-bed duplex units, selling at 1.5 million shillings, 2.25 million shillings, 3 million shillings and 7.5 million shillings, respectively, translating to 59,896 shillings per SQM.
According to Stima Investment Cooperative, in order for prospective buyers to be eligible they must be members of Stima Investment Co-operative Society, and earn a basic salary of not more than 100,000 shillings p.m.
As per the Kenyan Government affordable housing development framework, the affordable housing units target the following income group categories as follows:
Individuals who fall under social and low-cost housing categories will acquire homes through Tenant Purchase Schemes while those earning above 50,000 shillings will purchase through low-interest rate mortgage loans.
According to State Housing and Urban Development, individuals will be acquiring the units through a rent-to-own model with monthly payments at an interest rate of 3-7 percent p.a., however it is not yet clear how the funding for the low interest rates will be sourced.