Mizizi Africa Homes diaspora customers rise by 50% in three months
Mizizi Africa Homes has reported increased appetite for its affordable homes by Kenyans in the diaspora and foreign investors owing to global political events last year, technology and improved transparency on local projects.
Over the last three months, the number of foreign investors and Kenyans sending money back home to invest in the developer’s projects has increased by 50 per cent.
“Since July 2020 we have been recording higher numbers of Kenyans from the diaspora markets seeking information and investing in affordable housing units. Our commitment to transparency about projects through a customer-centered approach that gives updates almost in real-time has helped many make the decision to invest with us,” said Mizizi Africa Homes Chief Executive Officer, George Mburu.
Latest Central Bank of Kenya data shows that Diaspora Remittances increased to Sh Sh 331 Billion in 12 months to November 2020 compared to Sh 304 Billion a similar review period to November 2019. It shows remittances rose by Sh 27 Billion despite a global Pandemic that ravaged economies across the World.
“Two months ago, Kenya unveiled its first licensed investment fund, the African Diaspora Asset Managers (ADAM) licensed by Capital Markets Authority, boosting confidence of Kenyans living abroad to place their investment through a safe and regulated platform,” said Mburu.
He added, “We believe these new developments that address bottlenecks in diaspora investments are increasing the appetite for local investments.”
Financial analysts attribute the rise in diaspora remittances to political heat that characterised US Elections as among key reasons many Kenyans are opting to invest their savings back home.
Kenyans have over time now been using up to three quarters of their diaspora remittances to meet daily basic needs including food, education, healthcare and other expenses.
Low focus in investment projects like real estate, Mburu said, have for a long time now been hampered by a lack of information on projects, difficult and very strict procedures, as well as lack of formal channels that have bred serious trust issues.
Now, all of the developer’s seven housing projects have at least two Kenyan diaspora investors or a foreign direct investor purchasing a unit or more mostly for re-investment.
Mizizi Africa Homes said foreign investors snapped up 50 per cent of units in its fourth project, Hummingbird Estate that comprises 3-bedroomed houses.
The 18-units project located along Kenyatta road, off Thika road on exit 14, was launched mid July 2020.