Step-by-Step Process to Own a DUT Townhouse

The Diaspora University Town (DUT) plan includes 3,500 townhouses, each a double house with 5 bedrooms and 4 bathrooms. Below is the step-by-step process for becoming a DUT townhouse developer and owning a house, starting with as low as Ksh 12,000.

STEP 1. KSH 750,000

Have cash of Ksh 750,000 or borrow Ksh 750,000 through the Personal Unsecured Loan products offered by banks.

EXAMPLES OF PERSONAL UNSECURED LOANS IN THE MARKET

KCB Bankhttps://ke.kcbgroup.com/for-you/get-a-loan/unsecured-loan/personal

Coop Bankhttps://www.co-opbank.co.ke/borrow/personal-loan/

DTB Bankhttps://dtbk.dtbafrica.com/account/unsecured-loan

ABSA Bankhttps://www.absabank.co.ke/personal/get-a-personal-loan/#personalloancalculator

STEP 2. DUT-THIDA

Sign a DUT Townhouse Investment and Development Agreement (THIDA) https://dut.or.ke/THIDA2025.pdf and put in the Ksh 750,000 in the Diaspora University Trust account indicated in the THIDA Article 2.

Sign online at the DUT website https://dut.or.ke/thd

Your file will be open as indicated in THIDA Article 3.

STEP 3. PAY INSTALLMENTS AS THE DUT DEVELOPS THE TOWNHOUSE

Pay the monthly instalments to your bank.

DUT, on the other hand, will develop the townhouse in accordance with THIDA Article 4.

In about 12–48 months, the DUT Design-Build plan will complete the townhouse. https://dut.or.ke/design-build

STEP 4. COMPLETED HOUSE MORTGAGE

Upon completion of the house, it can be issued a KMRC mortgage through one of the 27 financial institutions that issue KMRC mortgages.

At this point, the Principal Balance of the unsecured loan (Step 1) and the House Development Cost (THIDA Article 4) would be added together.

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Example based on a TOWNHOUSE completed in month 20.

A person can take an unsecured personal loan of Ksh 750,000 from Coop Bank for 11 years (132 months). If the interest rate is 15%, the monthly instalment is Ksh 11,632.

In 20 months, a person can budget to pay Ksh 12,000 x 20 months = Ksh 240,000.

The Ksh 240,000 would be applied as follows: about Ksh 190,000 to bank interest and Ksh 50,000to principal.

At month 20, the principal of Ksh 750,000, less 50,000, results in a principal balance of Ksh 700,000. The Ksh 700,000 would be paid off during the mortgage issue.

The House Development Cost is budgeted at Ksh 6.5 million.

The total of Ksh 700,000 plus Ksh 6.5 million = Ksh 7.2 million.

Ksh 7.2 million would be issued as a mortgage at 9% over 25 years, secured by the completed house.

The Ksh 7.2 million at 9% over 25 years calculates to a monthly mortgage repayment of Ksh 60,422.

STEP 5. COMPLETED HOUSE USAGE

If the owner is working in one of the 15,000 Jobs being created at DUT or in the DUT neighborhood, the owner can live in their house in a well-planned town with a clean and healthy environment, a University, a level 5/6 university hospital, good basic education schools for children, and other amenities.

If the owner does not live in the house, the owner can lease the house to DUT in accordance with THIDA Article 12 and receive Ksh 65,000 a month.

Using the example in Step 4, the Ksh 65,000 would be applied to the monthly mortgage of Ksh 60,422.

The difference of about Ksh 4,000 would be the owner's monthly income. This means owning a townhouse by making 20 instalments of about 12,000 each in 20 months, totaling Ksh 240,000.

STEP 6. COMPLETED HOUSE EQUITY

Upon completion, each house will have equity calculated as Sale Price less the mortgage value. The sale prices are recorded in the DUT THD page https://dut.or.ke/thd

Year 1 Sale Price. Ksh 8 million
Year 2 Sale Price Ksh 8.5 million
Year 3 Sale Price Ksh 9 million
Year 4 Sale Price Ksh 9.5 million
Year 5 onward Market Price.

Using the Example in STEP 4, a house completed in month 20 would have a sale price of Ksh 8.5 million. This means the equity in the house would be the difference between the Ksh 8.5 million sale price and the Ksh 7.2 million owed, which equals Ksh 1.3 million.

The progressive investments of Ksh 12,000 a month for 20 months (Ksh 240,000) would grow to Ksh 1.3 million.

DUT uses the GDP Growth approach, which grew the U.S. from an economy of $57 billion to the current $30 trillion. DUT will achieve a GDP of Ksh 20 billion.