Update:Diaspora Village Project
It is a while since my last update. However at Diaspora Village, things are looking pretty good. During
the month of August and September, I engaged in some very exciting projects relating to Diaspora
Village. First, I have discovered that Isinya town is the nearest built up town to Konza city. This is
where the builders of Konza City will be sleeping over the next 7 years.
Konza City Management Draft Bill 2013
KOTDA bill 2013 has entered public discussion. It is posted on Konza City website. Please follow this
draft bill. There will be a lot of work at Konza City during construction phase. www.konzacity.co.ke
Diaspora Village Best News
For Diaspora Village to become reality as I dreamt it, I had engaged several foreign banks (Non-Kenyan)
to find out if any can finance the construction of all houses and infrastructure to be built in one go.
One bank has come back to me and they have really amazed since they sent someone to Kenya for due
diligence. Jamii Bora projects gave us all the points. Good News is that they have agreed to finance
and they have also came up with a model.
The project will be built with the assumption that everyone is building a house to sell. The house has
been given a selling price of Ksh 9.59m at December 2017. The land owner will come in as joint
venture partner. The land value at December 2017 is put at Ksh3.0m. The land owner also shares in the
profit of the sale at 30%. This in money terms is Ksh 0.9m. I know there are a lot of figures but in
summary the land owner will get Ksh 3.90m at December 2017.
If the land owner decides to keep the house, they will pay the bank in form of mortgage denominated
in US$ at a rate of 7% or Ksh at market rates.
Below table was given to me at Gatwick airport and even made me miss my flight to Germany. They
are mainly figures but a lot of you I am sure will understand.
House Construction Cost for a 4 bed house on 1/8 Acre (Actual BQ) 3.25
Land Cost 1/8 Acre Plot at December 2017 3.00
Bank interest during construction (18 months) Jan 2016 – Dec 2017 0.34
Total Cost of House including Land & Interest Jan 2016 to December
Developer Profit Margin (Note land owner is in JV with Developer) 3.00
House Selling Price (Sales will start 2014) 9.59
This table explains how the selling price was arrived at.
If Land owner want us to sell the house return by December 2016 Ksh (m)
The value of land 3.00
30% Share of profit 0.90
Total value of return to Land owner by December 2016 3.90
If land owner wants to keep his house Ksh (m)
Mortgage amount 3.25
Plus Bank Interest during construction 0.34
Plus 40% Share of Developer Profit 1.20
Total Mortgage Amount for a 4 bed House in the estate on 1/8 of an Acre 4.79
The owner of the land is not required to provide any cash. I will deposit the money planned for
infrastructure with the bank as the project deposit of Ksh 50m. The developer will design the house, a
4 bedroom family house and the infrastructure.
I personally think it is a blessing from heaven. It cannot get better than this. In fact, this bank and
their development company are ready. I told them that we have to complete the buying process and
put the title deeds in the land owner’s name. I am therefore recommending that we take the offer.
We must all ensure that all plots are sold so I am asking all buyers to recommend to 2 -5 of their
friends. We must sell every plot by 31/12/2013. The project planning will move to next stage.
Everyone should know now that we are selling the plots with very good payment plan. Anyone can
really afford now that we have a 36 months plan. Our financing bank is aware of this.
WITH DEPOSIT PLAN Ksh US$ GBP Euro
Price 870,000 10,235 6,444 7565
Deposit 20% 174,000 2,047 1,289 1,513
Balance over 12 Months 63,810 751 473 555
Balance over 24 Months 34,750 409 257 302
Balance over 36 Months 25,165 296 186 219
NOTE: Project will start immediately as there is a lot of planning work to be done and 3D of the entire
estate will be published soon.