Cytonn Investments has launched the country’s first Home Ownership Savings platform within a regulated collective investment scheme dubbed Cytonn Affordable Housing Investment Plan (CAHIP).
As part of the Finance Bill 2019 that was assented to by the President on November 7, 2019, the scope of approved Institutions which can hold savings towards Home Ownership Savings Plan was expanded to include Fund Managers and Investments Banks registered under the Capital Markets Act, effective January 1, 2020.
Cytonn Investments, who has structured CAHIP, has partnered with the Cytonn Money Markets Fund managed by Cytonn Asset Managers Limited, to provide those saving towards home purchase with an attractive investment proposition, compared to those currently available in the market, with a target yield of 11.0% per annum.
Speaking at the launch of CAHIP, Cytonn Chief Operating Officer Shiv Arora insisted that the platform will help the country realize President Uhuru Kenyatta’s Affordable Housing pillar of the Big Four Agenda.
“We are constantly striving to provide creative and innovative solutions in support of the government’s affordable housing agenda and Cytonn Affordable Housing Investment Plan (CAHIP) is one of those solutions. CAHIP will provide individuals saving towards home purchase with an attractive investment proposition, compared to those currently available in the market, and thus enhance their ability to purchase or construct a residential house,” Ms. Arora explained.
CAHIP similarly provides a platform that will enable individuals develop a credit profile, as the savings made by a subscriber act as proof to a financial institution of their creditworthiness, thus raising their chances of accessing a mortgage loan upon maturity of the savings, in addition to encouraging a savings culture which ultimately makes it easier for an individual to acquire a home by efficiently raising a deposit for a house loan.