US $9m housing units are set to be constructed in Kajiado County by Kenya Pipeline Company Pension Scheme. This will be its first real estate investment of such an amount in a 101-maisonette gated community in Kitengela, Kajiado County.
Scheme administrator Sammy Njeru confirmed the reports and said that the project will put up on a 10-acre plot has been reserved for the stand-alone units that will retail at Sh10 million for each of the 47 three-bedroomed one-storeyed units. The 54 four-bedroom units will go for Sh11 million.
Mr. Njeru explained that the initiative has presented a valuable opportunity for investment in the sector. The Retirement Benefit Authority’s ceiling on investment in real estate stands at 30 per cent.
“The idea is to have an asset mix that will see our fund’s value grow to almost US$ 100m in the next five years and our diversification into the property market offers the foundation for the planned growth,” he said.
Other projects by Kenya Pipeline Company Pension Scheme
Apart from the current project, the scheme has also purchased a 40-acre piece of land in Kitengela and another four-acre piece of land at Riat Hills in Kisumu County and they are currently in discussions with the 1,542 members and their sponsor, Kenya Pipeline Company, to raise contributions.
The emergence of Kenya Pipeline comes after the multi-million-shilling investments in real estate by pension schemes such as Safaricom’s mega mall-cum-residential units development in Athi River, KPA’s South C project, KenGen’s Rosslyn Springs and Stima’s Runda, Bogani and Loresho properties.
Kenya Pipeline Company Pension Scheme provides cash benefit and pensions for permanent and pensionable employees of Kenya Pipeline Company upon retirement or withdrawal from employment as well as a relief for the dependents of the deceased employees.