The Local Authorities Pension Trust (Laptrust) is set to redevelop a seven-acre estate it owns in Mombasa County’s Changamwe area at a cost of Sh3.5 billion.
The proposed project, disclosed in an environmental, social impact assessment report filed with the National Environment Management Authority (Nema), will see the evacuation of the existing tenants living in the old units.
Laptrust will knock down the 25 apartment blocks that host 264 one-bedroom units and put up five apartments with a total of 714 units of one, two and three bedroom apartments.
“The proponent envisages a mixed-use development that will combine retail, hospitality, and residential components.”
Laptrust runs the pension scheme for employees of county governments. The new project will substantially expand the trust’s portfolio in the real estate sector.
Laptrust holds properties valued at more than Sh16 billion in various parts of the country including Nairobi, Kajiado, Nakuru and Mombasa.
It earned a rental income of Sh450 million in 2022, down from Sh519.3 million in 2021, making properties the second largest source of income.
Interest on government securities is the top source of income, generating Sh1.08 billion in 2022 compared to Sh1.05 billion the previous year.
The proposed mixed-use development in Changamwe is expected to raise the rent collected from the estate, by expanding the number and diversity of tenants who will be offered newly built premises.
Laptrust says it has tenants on 19 apartment blocks who are paying rent. Three apartment blocks are currently vacant after their last tenants –police officers— vacated.
Another three apartment blocks are occupied by squatters who are not paying rent. The units taken up by squatters were acquired by the Kenya National Highways Authority when the agency was dualling the Nairobi-Mombasa Road. More than 250 tenants will be moved in the redevelopment of the estate.
The old housing units initially belonged to the County Government of Mombasa and were allocated to its staff. They were later transferred to Laptrust to settle debt owed to the pension scheme. Mombasa County’s population is projected to reach 1.42 million people by 2027.
“Changamwe sub-county is an important industrial and residential area within Mombasa County,” Laptrust said.
“Most residents live in very congested close quarters and old government, municipal or parastatal housing as well as additions that have been done to cater for growing families.”
