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21 January, 2020
Press Release

Cytonn Investments has today launched the first Home Ownership Savings platform within a regulated collective investment scheme, Cytonn Affordable Housing Investment Plan (CAHIP), whose key objective is “Building a deposit towards your housing”

As part of the Finance Bill 2019 that was assented to by the President on November 7th 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 Markey 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 the target yield of 11.0% per annum.

Speaking at the launch, Cytonn Chief Operating Officer, Shiv Arora said, “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.”

“Potential home buyers will benefit from CAHIP through; (i) accessing a flexible platform for savings towards home purchase, (ii) tax advantages with a reduction of their taxable income to a maximum of Kshs 8,000 per month or Kshs 96,000 per annum, in addition to a tax exemption on  interest income earned by the depositor on a HOSP deposit of up to a maximum of Kshs 3.0 million, (iii) relatively high returns compared to the market, with a target yield of 11.0%, and (iv) a relatively low initial investment of Kshs 1,000 and minimum monthly contribution of Kshs 1,000, ‘’ he stated.

In addition, CAHIP 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.

Notes to the Editor:

CAHIP is an investment plan structured by Cytonn Investments, in collaboration with its affiliated Fund Manager, Cytonn Asset Managers, and aims to enable Kenyans own a home through saving into Cytonn Money Market Fund (CMMF), which targets a yield of 11.0% p.a. 

Cytonn Asset Managers Limited (CAML) Cytonn Asset Managers Limited (CAML) is the regulated affiliate of Cytonn Investments Management Plc and is licensed as a Fund Manager by the Capital Markets Authority and the Retirement Benefits Authority. The company is also a licensed Real Estate Investment Trust (REIT) Manager under the Capital Markets Authority. Our objective is to offer superior risk adjusted investment returns to our clients that is above market average through investments in both public markets and alternative investments markets

Cytonn Investments is an independent investment management firm, with offices in Nairobi - Kenya and D.C. Metro - U.S. We are primarily focused on offering alternative investment solutions to individual high net-worth investors, global and institutional investors and Kenyans in the diaspora interested in the high-growth East-African region. We currently have over Kshs 82.0 billion of investments and projects under mandate, primarily in real estate.