Cytonn Investments affiliate Cytonn Asset Managers Limited, has launched a regulated Collective Investment Scheme in Kenya, focusing on financing mid to low income housing, known as the Cytonn High Yield Fund (CHYF). The fund is seeking to raise of Kshs 30 bn 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, Cytonn CEO Edwin H. Dande said the company was “constantly striving to provide creative solutions that will ensure the affordable housing agenda is attained.”

He said the fund will allow another avenue for the private sector to bring regulated capital towards the development of low to mid-income housing. “We believe the fund is in line with the government’s agenda of attaining affordable housing by 2020. Driven by such factors we asked ourselves, ‘How can we bridge these challenges and provide affordable mixed-use developments?’ CHYF is our solution,” he added.

Victor Odendo, 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.”

Dr. Edward Odundo, Chairman, East Africa Forum for Alternative Investments said rapid urbanization was putting pressure on housing delivery systems making it difficult for many first-time home buyers to afford formal housing without proper housing finance solutions.

Speaking at the event, Housing PS Charles Hinga and the Chief Guest 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.

Cytonn said the fund is regulated by the Capital Markets Authority (CMA) and targets to offer returns of up to 15%. The minimum initial investment for the fund will be Ksh. 1,000,000, with an initial lock-in period of 3 months, after which investors can access all or part of their capital.