SAVINGS

Cytonn launches home ownership savings platform

In Summary

•This after the Finance Bill 2019 expanded the scope of approved institutions which can hold savings towards Home Ownership Savings Plan to include Fund Managers and Investments Banks registered under the Capital Markets Act, effective January 1, 2020.

Cytonn Investment head of private equity and real estate Shiv Arora on March 23/FILE
Cytonn Investment head of private equity and real estate Shiv Arora on March 23/FILE

Cytonn Investments has launched a home ownership savings platform  following amendments to the Finance Bill 2019.

The Bill expanded the scope of approved institutions which can hold savings towards home ownership savings plan to include fund managers and investments banks registered under the Capital Markets Act, effective January 1, 2020.

The Cytonn Affordable Housing Investment Plan (CAHIP) will be run i partnership with with the Cytonn Money Market Fund managed by Cytonn Asset Managers Limited.

It will provide those saving towards home purchase with an investment proposition with the target yield of 11 percent per annum.

 

“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 is one of those solutions,”said Shiv Arora, Cytonn Chief Operating Officer.

Potential home buyers will be able to get a reduction of their taxable income to a maximum of Sh8,000 per month or Sh96,000 per annum, in addition to a tax exemption on interest income earned by the depositor to a maximum of Sh3 million.

They will also be subjected to an initial investment of Sh1,000 and minimum monthly contribution of Sh1,000.

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.

Withdrawal of the funds is strictly to buy a house, construct a house or buy land for construction upon proof.