Pensions administrator CPF Group has won a 31-year land lease from Homa Bay County that will see the company build a Sh500 million new headquarters for the county.
The county on Monday handed the lease for the parcel identified as Kanyada/Kanyabala/3537 to CPF.
This paves the way for the pensions administrator to construct the facility that will house offices for county staff after receiving approval from the National Land Commission (NLC).
Through the arrangement, CPF will develop the project through the tenant purchase scheme that allows for flexible and long-term financial support.
“We are excited to be pioneers of a transaction engagement of this kind that leverages innovative financing models like the tenant purchase scheme for public infrastructure projects,” said CPF Group Managing Director Hosea Kili.
Dr Kili said CPF is open to extending such a financing mechanism with other counties that are seeking to build new headquarters.
CPF administers both private and public pension funds including the Public Service Superannuation Scheme (PSSS), the Local Authorities Pensions Trust (Laptrust), the County Pension Fund, and the CPF Individual Pension Plan.
The company has been angling to grow its investments in recent years, and last year revealed plans to buy a stake in the Africa Finance Corporation (AFC).
“This is part of our plan to diversify our investments,” said Dr Kili in September last year.
Further, in 2022, Laptrust listed the Imara Real Estate Investment Trust (I-REIT) at the Nairobi Securities Exchange (NSE).
“NLC stands ready to facilitate similar transactions for other county governments,” said NLC chairman Gershom Otachi.
Besides AFC, CPF recently said it has identified other multilateral development partners such as the African Development Bank (AfDB), the International Finance Corporation (IFC), the Trade and Development Bank (TDB) among others to co-finance huge projects to enjoy economies of scale.
