12 | NEWSFOCUS SEPTEMBER 25, 2018 www.mygov.go.ke CS praises investments trusts for backing affordable housing plan The newly launched Real Estate Investments Trusts Association of Kenya to stimulate the development of decent and affordable housing across the country asset classes and pressing developments in the real estate sector in Kenya. “The launch of REITs AssoBY VIONA JOY/WAMBUI MORAA, KNA A ccording to Transport, Infr astru ctur e, Housing and Urban Development Cabinet secretary James Macharia, consolidated investment in real estate provides a solution to bridging the huge affordable housing deficit, which has so far accumulated to 1.85million housing units. He said Real Estate Investments Trusts (REITs) will help Kenya realise its housing agenda that seeks to put 200,000 units into the market annually. This he said during the inaugural REITs conference that brought together at least 250 delegates to discuss investment opportunities, ciation of Kenya’s annual conference is timely as it coming when the government is focused on closing the annual gap of 200,000 housing deficit across the country; through the 500,000 affordable housing programme,’’ Macharia said. He added that REITs brings a raft of new and regulated opportunities into the sector and diverse innovative programs that will be all inclusive, to allow small investors in Kenya to own property. REITs are regulated investment vehicles that enable collective investment in real estate, where investors pool their funds and invest in a trust with the intention of earning profits or income from real estate, as beneficiaries of the trust. They source funds to build or acquire real estate assets which they sell or rent to generate income. The income generated is then distributed to the shareholders at the end The conference has created an opportunity for key players in the real estate sector to be appraised on the potential and opportunity presented by REITs as a viable investment vehicle - Geoffrey Odundo Machakos County no longer on relief Ambitious plans by the Machakos government has improvised a quarter acre farming model designed to give a farmer multiple crop varieties which when well executed, the farmer would have continuous farm production and harvest throughout the year farmers to harvest maximally. He noted that agriculture forms the main economic activity, source of livelihoods and employs 87% of the popuM BY JOSEPH KAMOLO, KNA achakos County lation in Machakos. “As the key driver of the is food secure and no longer in the list of counties receiving relief food, thanks to the uptake of innovation and modern farming technologies employed by farmers through the support of both the county and national governments. Speaking during a two days farmers training at Machakos ATC Friday, the county executive for agriculture and food security Urbanus Musyoka said the county government has laid meticulous plans since 2013 which have enabled county’s economy, the government has put in place good agricultural policies and encouraged farmers to adopt modern farming technologies which continue to yield good results,” added Musyoka. Ambitious plans by the Machakos government has improvised a quarter acre farming model designed to give a farmer multiple crop varieties which when well executed, the farmer would have continuous farm production and harvest throughout the year. The quarter acre farming model for income is an effective and simple model of income generation with an ecosystem dam, capsicum garden, 10 beehives, a dairy unit and chicken where all the four make around Sh63, 000 per month. The county executive said the government would select model farmers in each ward in two months for demonstration saying account opening would be mandatory for the farmers to benefit and for accountability purposes. He said the county government would promote the quarter-acre model to farmers as a start-up then expand to large scale when the farmers gain experience after starting small. As an example, Musyoka said if a farmer plants coriander (dhania), black night shade (managu), capsicum (hoho), ginger (tangawizi), garlic (kitunguu saumu), he would have revolving crops for the market throughout the year. In the first month after planting, coriander is ready for the market while black night shade matures in two months with capsicum coming in three months. of a financial year. REITs Association of Kenya chairman Edward Kirathe thanked the government for developing framework for the establishment of REITs in Kenya. “REITs will enable investors diversify income streams as well as grow through professional management and economies of scale that allow them to transcend individual circumstances in continuing to generate wealth,” Kirathe said. “The conference has created an opportunity for key players in the real estate sector to be appraised on the potential and opportunity presented by REITs as a viable investment vehicle through which local and international investors can tap into the booming real estate 200,000 Housing deficit across the country. The government is focused on closing the deficit through the 500,000 affordable housing programme recording Sh108 million in profits for the year ended 2016; no other investor has joined the segment since then. The Secretary Housing Patrick Bucha while addressing the same conference at the panelists’ discussion said that the government ambitious affordable housing programme will improve citizens’ living standards since the plan will stimulate economic growth and trigger industrial growth, while creating massive job opportunities and better decent affordable housing for all. “Land occupied by slums across the country are high in value hence the need for Government to improve livelihoods of Kenya occupying the land through provision of better housing. The 500,000 affordable sector in Kenya,’’ NSE chief executive Geoffrey Odundo said. The Nairobi Securities Exchange became the fourth African bourse to launch the Real Estate Investment Trust (REITs) market in what coincided with the opening of the Stanlib Fahari I-REIT public offer in October 2015. Although Stanlib Fahari was well received at the bourse, housing will bring to an end the issue of slum tourism in our country, “said Mr. Bucha. Other countries that have REITs at their stock exchanges in Africa includes: Ghana, Nigeria and South Africa. The launch was organized by the Nairobi Stock Exchange and it came at a time when the government is engaging in finding solutions for sustainable financing for affordable housing. 87% Percentage of population that agriculture employs in machakos, being the main economic activity and source of livelihoods
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