Safaricom pension fund plans Sh2.5bn housing estate, mall

Safaricom’s employee retirement scheme is seeking regulatory approval to build a Sh2.5 billion housing and commercial real estate with an eye on outsized returns associated with Kenya’s property sector.

The mixed housing and commercial development is to be located in Mavoko, Machakos County.

The Safaricom Staff Pension Scheme will join a growing list of property developers targeting home owners with gated community housing estates in satellite towns that offer commercial and recreational facilities.

“The expansion of Mombasa Road and the introduction of mass transport has elevated Athi River in the eyes of investors and also due to its close proximity to Nairobi, Machakos and Kajiado counties,” States a regulatory filing by the Safaricom staff retirement fund.

The pension scheme has submitted for approval plans to build a four-storied shopping mall and a total of 270 houses on a 25.5 acre parcel of land.

“Increase in population and urbanisation in Nairobi has led to rapid increase in demand for retail, commercial and residential facilities which has led to people moving out of the city centre to satellite centres within the vicinity of the city,” adds the report.

The pension scheme’s plans include building 113 four-bedroom houses and another 157 three-bedroom units, with each home having two parking spaces making a total of 540.

Project filings also reveal intentions to build a retail centre occupying 20,000 square metres hosting a supermarket, restaurants and banks.

The gated community will also have a kindergarten with two classrooms, a recreational centre consisting of a swimming pool, social hall, park as well as a jogging track.

“The mixed-use development is in response to the growing demand for developments that combine retail, commercial and residential uses while emphasising walkability and embracing the live, work and play motto,” the pension scheme notes.

Centum Investment is building Two Rivers, a mega real estate project in Runda that include two hotels (five and three star), a retail and entertainment centres and residential apartments.

The family of the late Nelson Muguku, is planning a Sh2.6 billion complex in Karen comprising a two-storey, 25,000-square metre shopping mall and extensive high-end residential apartments, retail space and offices.

Thika Road’s Garden City, which opens its first phase to the public in May, will have 33,000 square metres of retail space, 76 two and three-bedroom apartments and duplexes and a three-acre central park.

“The growth of mixed use developments in Kenya has been on the rise due to the demand for developments which can support live-work-play within the community,” Safaricom’s pension scheme notes.

Safaricom’s staff count currently stands at 4,022, having increased 50 per cent from 2,666 in March 2013.

The employee retirement scheme also owns 28 per cent of Mandharini holiday homes, a high-end property development in Kilifi, jointly with the Kenya Tourist Development Corporation and other private and institutional investors.

READ: Investors kick off second phase of Kilifi holiday homes scheme
The first phase of the project began in 2010, with 22 houses nearly complete while the second phase of the 150 units commenced a year ago. House prices at Mandharini range from Sh22.5 million to Sh62.5 million.