Diaspora Kenyans are on track to build 3,500 townhouses at the Diaspora University Town (DUT). The current goal is for all the houses to be completed before 2030. The development budget is Ksh 25 billion. The budget will build 3,500 townhouses, 60 km of roads, bridges, and infrastructure for clean water, sewer, stormwater, and electricity.
The 3,500 townhouses are part of the Diaspora University development. The townhouses will be residences for the university and hospital faculty, staff, and students. The houses will accommodate the workers of about 300 MSMEs that will support the university, town residents, and students. 20,000 jobs will be created. Most of the people taking the jobs will live in the townhouses.
The Ksh 25 billion budget is from the Diaspora Kenyans' capital and the Kenya Mortgage Refinance Company (KMRC) money. The KMRC money will be through the completed house product of financing of up to Ksh 10.5 billion, 105% finance, single-digit interest, and long tenor. The finance is made available to a primary mortgage lending bank that then lends to the owners of the houses.
KCB Bank, one of the banks that is a KMRC primary mortgage lender, has already tailored the finance product at 105% finance, 9.5% interest, and 25 years. The completed house development cost of Ksh 6.5 million, when established as a mortgage through the KCB product, calculates to less than Ksh 60,000 a month. The townhouse usage value that is set at Ksh 65,000 would pay the mortgage.
The property development system that will construct and deliver the 3,500 townhouses is ready after many years and hours of work in the U.S and in Kenya. As the DUT Project Director, I can confirm that everything is ready. We have 495 townhouse developer files open through a Townhouse Investment and Development Agreement (THIDA). The 495 files that are opened are developing 1,300 townhouses.
The design-build delivery approach was established based on the delivery approach that, in 1930/1931, built the State Empire Building of 102 stories and 200,000 sqm of floor space in 400 days (58 weeks).
The 3,500 townhouses (525,000 sqm) and 60 km of road/infrastructure network will be completed in 218 weeks (1,526 days) at a Ksh 25 billion budget. About 3,500 persons are ready to work in producing building materials and in the construction of houses and roads.
About 1,000 Diaspora Kenyans will, upon completion of the townhouses, own some of the 3,500 townhouses. Some will be living in the town and in the townhouses after relocating from the U.S. Some will be working in the university, hospital, or town. Others will be involved in opening some of the 300 MSMEs.
The DUT job creation and property development system will be fully embraced by a majority of Diaspora Kenyans. By 2030, 50% of the remittances from the Diaspora will flow to Kenya to create jobs, develop property and open MSMEs. The Diaspora Kenyans and Kenyans will achieve wealth as they develop Kenya.
Diaspora University, Diaspora Kenyans, Diaspora University graduates, and Kenyans will, through the DUT job creation and property development system, progress to create over 1,000,000 jobs by 2035 in all 47 counties as they contribute to the growth of Kenya's GDP to about $400 billion.
By 2075, as Kenya's GDP reaches $2 trillion, no Kenyan family will be living in a slum or unplanned settlement. The estimated 100 million population will be living in well-planned towns with good housing, clean water, and a clean environment. The life expectancy in Kenya will, by then, have reached 75 years.
(Dan Kamau is the DUT Executive Trustee & Project Director. He lived in Worcester, MA, before relocating to Kenya to start DUT. www.dut.or.ke)
