NSSF to Build 30,000 Low-Cost Homes in Machakos

The National Social Security Fund (NSSF) is planning to build 30,000 low-cost houses in Mavoko, Machakos County, as it seeks to tap into the lucrative residential property market.

NSSF Managing Trustee Richard Langat told journalists in Nairobi that the Fund will build some 30,000 units on a 960-acre piece of land in Mavoko and another 250 homes on its 1.9-acre plot in Milimani, Kisumu.

Mr Langat further disclosed that the NSSF was in talks with governors in Nyandarua, Kakamega, Lamu, and HomaBay to build homes to meet the increasing housing demand in the counties.

The NSSF Mavoko housing project, which has been selected as one of the flagship projects under the Kenya Vision 2030, is expected to greatly raise the profile of Machakos County which will also host the proposed Sh800 billion Konza ICT Park.

Although the NSSF is yet to give timelines for the Sh80 billion project, people familiar with the plan say the Fund is seeking joint venture partners due to the need to meet the Retirement Benefit Authority’s (RBA) requirement capping real estate investments by the pension scheme to 30 per cent of their assets.

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“NSSF’s investment in property development is regulated by the RBA, which stipulates a maximum of 30 per cent of assets in real estate.

“If we were to embark on this project solely we would exceed the 30 per cent limit,” said a senior NSSF official on condition of anonymity.

Under the joint venture, the NSSF will provide land – which is valued at Sh3 billion – and in return, it will earn capital gains from the sale of the houses or earn rental income.

NSSF is a leading investor in the local property market – holding an investment portfolio worth billions of shillings in properties including the Social Security Building at Nairobi’s Community area, Bruce House, Hazina Trade Centre, NSSF House, and the Mountain View estate in Kangemi.

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