Stima Investment Cooperative Appointed Lead Sales Agent for Pangani Heights
Last week, Stima Investment Cooperative, a local investment firm, was named the primary sales agent for Pangani Heights. The development is one of the seven affordable housing projects falling under the Nairobi Urban Regeneration initiative.
Pangani Heights is a development situated on a 5.2-acre parcel of land along Ring Road Ngara, which was launched in December 2018 and awarded to Technofin Kenya as the primary developer.
According to Cytonn Investments Weekly Report, the project’s construction is scheduled to commence in August 2019 and will comprise of 1,434 units, including social and low-cost units.
The social units will consist of 25 SQM-1 bedroom and 50 SQM-2 bedroom units priced at 1 million shillings and 2.5 million shillings, respectively, equating to 45,000 shillings per SQM.
On the other hand, the low-cost units will include 30 SQM-1 bedroom, 40 SQM-2 bedroom, 60 SQM-3 bedroom, and 90 SQM-3 bedroom duplex units, with prices ranging from 1.5 million shillings to 7.5 million shillings, corresponding to 59,896 shillings per SQM.
To be eligible to purchase Pangani Heights units, prospective buyers must be members of Stima Investment Co-operative Society and earn a maximum basic salary of 100,000 shillings per month, according to Stima Investment Cooperative.
The Kenyan Government’s affordable housing development framework targets different income groups as follows: social housing for those earning up to 19,999 shillings, low-cost housing for those earning between 20,000 – 49,999 shillings, and mortgage gap for those earning between 50,000 – 149,999 shillings. Those falling under the social and low-cost housing categories will acquire homes through Tenant Purchase Schemes while those earning above 50,000 shillings will purchase through low-interest rate mortgage loans.
State Housing and Urban Development has stated that individuals will acquire units through a rent-to-own model with monthly payments at an interest rate of 3-7 percent per annum. However, it is yet to be established how the funding for the low-interest rates will be sourced.