200 Diaspora Kenyans and Kenyans are opening KCB Bank accounts as they progress to develop the first 200 townhouses at Diaspora University Town (DUT). The developers use a Townhouse Investment and Development Agreement (THIDA) that creates a development system that the developer and Diaspora University Trust execute.
Dan Kamau, the DUT project director, says that the first 200 townhouses, will be developed as a budgeted cost of Ksh 1.3 billion. He says that the finance will be tapped from the Kenya Mortgage Refinance Company (KMRC) product through the KCB Bank.
The KCB bank (KMRC) mortgage product offers 105% financing up to 10.5 million, 9.5% interest, and a 25-year tenor. This product will finance the Ksh 6.5 million house development cost for each of the 200 townhouses.
On the other side the 200 townhouses will be produced by a budget of Ksh 1.3 billion. The budget will pay construction workers, building materials, construction finance interest, and the DUT development costs.
Dan says that about 700 million of the Ksh 1.3 billion will pay 5,000 persons. 2,000 will be working at the DUT construction site. The other 3,000 will be producing building materials in the Ndara B 16 MSMEs.
The townhouse developed will be a two-story building with five bedrooms and four bathrooms, sitting on a 50ft x 100ft plot.
The properties will be serviced by a 60ft paved road. The infrastructure to be incorporated includes clear water, sewer, storm water, power lines, ICT lines, and other infrastructure.
Once completed, the 200 townhouses will be used by students and those taking up jobs at the University, Hospital, Town, Design-Build, and MSMEs. The Trust will lease 100 townhouses at Ksh 65,000 and, in doing so, pay the monthly mortgage at Ksh 57,760.
Once the first 20 townhouses are completed, mortgages are issued, and users start living in them, the DUT system will be completed. Thereafter, the DUT system will progress to create 20,000 jobs and build 6,745 housing units at DUT.
The system that will be part of the Diaspora University will expand the creation of jobs and housing development in other parts of Kenya through new towns development.
Kenyans taking up jobs and settling in the towns they develop will every day achieve their Kenyan constitutional rights in articles 42, 43, and 53 regarding food, housing, healthcare, clean water, education, clean environment, and children's rights.
