Kenya’s cities and urban towns are experiencing a rapid increase in population, which has created a growing demand for housing. Our local landscape speaks of an annual deficit of two million houses (2M).
It is on the back of this realization that the government, through the State Department of Housing and Urban Development initiated a great plan in its Affordable Housing Programme, that would see the development of 500,000 low-cost homes, using innovative funding mechanisms. A key agenda item under the Big 4 Agenda.
The Amaka Fund now exists to finance the programme, and the public has shown great interest in this solution.
AMAKA Umbrella Fund, a revolutionary proptech solution will be able to contribute to the vision of the Affordable Housing Programme by incubating an ecosystem of investors in the property space.
Capital Markets Authority’s licensing of Amaka Umbrella Fund to operate a Collective Investment Scheme (CIS) in the market injects new hope to the over 300,000 registered users on the BomaYangu Portal to finally be allowed to participate in, and own homes through an affordable Tenant Purchase Scheme.
The Fund comprises of the Amaka Home Ownership Saving Plan (HOSP), accessible through the BomaYangu Portal, and the Amaka Qualified Investor Tenant Purchase Schemes Fund.
Amaka Home Ownership Saving Plan allows potential homeowners to save towards home ownership whilst their savings earn a return, compounded.
The Amaka Qualified Investor Tenant Purchase Schemes Fund provides offtake guarantees to property developers which then secures their investment in the programme.
The focus of the Fund is to provide offtake to pre-qualified property developers under the Affordable Housing Programme as well as affordable housing projects thus boosting plans by the government to build more affordable houses.
The entire process is automated and users are able to complete every step without human intervention and bias. This is a first in the property development space and we are excited to be on hand to provide Kenyans with a positive life-changing experience.
To this stage, our sincere gratitude goes out to the Capital Markets Authority in its quest to support MSMEs access funding through the Local Capital Markets and an encouragement to local technology companies to advance their innovative technological solutions.
We would also like to thank the Retirement Benefits Authority for actualizing access to 40% pension savings toward home ownership and specifically towards affordable homes.
We also wish to appreciate the support of our partners: Funds Trustee & Custodian - Stanbic Bank Kenya Limited, Fund Manager - Genghis Capital Limited, Legal Partner - KN Law LLP, and the State Department of Housing and Urban Development.
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