June 18th, 2024

FSD Kenya hosted a webinar on creating an equitable contract and model for tenant purchase scheme and linking the proceeds to an income REIT on Tuesday, 25th June 2024 3:00pm – 4:30pm (EAT).

The webinar, organised in partnership with Liaison Group, KN Law, Raisin Capital and Altair Ltd, discussed the importance of promoting fairness and equity in tenant purchase schemes; the risks of tenant purchase schemes; and how those risks are being mitigated in a live project (Ngara Heights).

Because over 80% of urban Kenya rents (and as much as 90% of Nairobi rents), there is a need to develop alternative models like Tenant Purchase Schemes (TPS) as an alternative route to homeownership compared to mortgages.

Further, due to the potential of Real Estate Investment Trusts (REITs) to attract institutional funding into housing, there is a need to understand more deeply how the income streams from affordable housing assets, particularly TPS income streams, can be transferred to a Real Estate Investment Trust (REIT).

An overarching principle of FSD Kenya’s programme is the Open Access initiative which aims to promote transparency to market data and market realities, to enable more coordinated risk taking and investment in the sector. For example, the learnings of this project are clearly applicable to the government’s affordable housing programme and FSD Kenya is keen to share such learnings.

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Click here for the webinar recording. 

Click here to read the blog and other documents discussed during the webinar.

 

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