The National Land Commission has approved the land lease request by Homabay county to allow CPF Group, a pension fund, develop the new county headquarters.
CPF will develop the project through a financing model, the tenant purchase scheme, that allows for flexible and long-term financial support.
The project has been actualised by the Homabay county Infrastructure Act that seeks to provide a framework for partnerships with private and public entities to finance county priority infrastructure.
Commenting on the deal, National Land Commission chair Gershom Otachi said they are delighted to present the approval as it paves the way for ensuring compliance with the law on strategic utilization of land to attract long-term investment.
NLC further committed to remain ready to facilitate similar transactions for other county governments.
On his part, CPF Group managing director and CEO Hosea Kili, lauded the National Land Commission and Homabay county for facilitating the transaction and making the project attractive for potential investors.
"We are excited to be pioneers of a transaction engagement of this kind that leverages innovative financing models like the tenant purchase scheme for public infrastructure projects,” Kili said.
The new headquarters will serve as a cornerstone for enhanced innovation, productivity and service delivery for all residents of Homabay, said Homabay governor Gladys Wanga.
"The project will not only provide a modern and efficient workspace for county government officials, but it will also serve as a symbol of progress and development for the entire region," Wanga said.
CPF last year invested into Africa Finance Corporation in a move that would enable the two entities fund targeted infrastructure investments in the country.
The move, the two firms said, is set to cushion Kenya and other African economies from the effects of the devaluation of currencies that make foreign loans expensive.
