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Kenya Power pension fund seeks designer for Sh1.4 billion block

A Kenya Power staff addresses a company meeting in Kisumu
A Kenya Power staff addresses a company meeting in Kisumu. The firms pension fund hopes to make good returns from the project. FILE PHOTO | NMG 

The Kenya Power Pension Fund (KPPF) is seeking an interior designer for its planned Sh1.4 billion multi-storeyed mixed-use development in Lavington, Nairobi.

KPPF says only interior design firms with over seven years of experience are wanted to provide details of past projects.

“A firm with five projects whose interior fit-out was worth over Sh100 million each earns seven marks per project (35 marks), projects worth below Sh100 million but above Sh50 million gets five marks (25 marks),” it says.

The tender that closes on November 7 seeks bidders with a professional indemnity insurance cover above Sh50 million who will earn an additional five marks, while those having a cover worth above Sh25 million but below Sh50 million get three marks.

Last June, KPPF invited a private partner, local or foreign equity partner to design and fund development of luxurious residential units and a high-end commercial complex on its 3.13-acre plot at a minimum cost of Sh1.4 billion.

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The electricity distributor’s staff pension scheme said its intention was to make handsome returns for their members via the development.

The land is located within the affluent neighbourhood on Naivasha/Riara Road close to the Junction Mall, Nakumatt Prestige, Adams Arcade, Yaya Centre among other facilities.

To avoid a situation where pensioners risk a loss, KPPF said the planned deal will see profits made from sale of the units based on percentages agreed with the equity partner where the internal rate of return (IRR) falls below 20 percent.

“The Fund will have the right to claw back on the developer’s equity interest in the special purpose vehicle.”

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