Cytonn Asset Managers Limited (CAML), the regulated affiliate of Cytonn Investments, Cytonn Asset Managers, has today launched the first specialized and regulated Collective Investment Scheme in Kenya, focusing on financing mid to low income housing, known as the Cytonn High Yield Fund (CHYF). CHYF will target assets under management of Kshs 30 bn, which shall be used for the development of 6,000 mid to low-income houses.
The ceremony was graced by Mr. Charles Hinga, Principal Secretary, State Department for Housing and Urban Development.
Speaking at the launch, Cytonn CEO, Edwin H. Dande said, “We are constantly striving to provide creative solutions that will ensure the affordable housing agenda is attained and Cytonn High Yield Fund is one of those solutions. It allows another avenue for the private sector to bring regulated capital towards the development of low to mid-income housing.”
Victor Odendo, the Principal Officer at CAML, explained that “The Cytonn High Yield Fund is a specialized Collective Investment Scheme, which has a high allocation towards investment in real estate assets, which have consistently demonstrated the ability to deliver higher returns than those from traditionally available assets. 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”.
Mr, Charles Hinga the Principal Secretary, State Department for Housing and Urban Development and the Chief Guest recognized Cytonn’s efforts towards crafting solutions that contribute to making housing affordable to all. Speaking at the event, he said “Congrats Cytonn for launching what I would call the best housing fund in the market today. The delivery of affordable housing is a major priority for the government. Working together with private sector players such as Cytonn is the only way we can achieve our targets for affordable housing, and I pledge my support. Let us continue to work together to fill the housing gap and create value for Kenyans,” he said.