INVEST WITH CAUTIOUS OPTIMISM; Remarks by Mi Vida's CEO Mr. Samuel Kariuki During the Launch of KEZA

This February, Mi Vida Homes launched an incredible affordable housing project named KEZA. I happened to attend the launch event which was held at Radisson Blu, UpperHill. This was more than a pomp and colour ceremony as the CEO Mr. Samuel Kariuki ceazed the stage to share his wisdom about investing in real estate and why KEZA is an urban oasis in Nairobi's Riruta area. Yes, investors always look at the return on investment (ROI) when making any buy decision and Sam had the answers.

From a general overview of Kenya's economy, the concept of uncertainity is quite eminent and any trained observer would not write it off. However, in Sam's analysis, there is room for cautious optimism given the determination of government to stabilize the macros in three years. This implies that Kenya is likely to find balance in implementing IMF programs that basically aim at deflating, deregulating and devaluing the national economy, markets and the shilling. Optimism is informed by growth prospects in high level of diaspora inflows, dollar inflows from agricultural exports, high demand for rental units and Nairobi's ranking as a leading investment destination in Africa.

"When balancing your investment portfolio, always include rental yielding real estate." These were Sam's remarks in respect to portfolio diversification as bondholders may ask. His argument was precise, "rent reprices with inflation, interest on bond doesn't." He also observed that the real estate asset itself appreciates with time in capital value which is not the case in holding bonds.

In his closing remarks, Sam commented on the need to invest with institutional investors like Mi Vida Homes which is a joint venture between two leading global brands, SPRE and Actis. In KEZA for instance, there is guarantee that contruction will be complete on schedule, there will be green spaces in the estate and due dilligence procedures have been followed in acquiring the land, planning it and developing it.