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    Senior Housing in Kenya

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    JOSEPH KARANJA
    Independent living communities for seniors are growing in Kenya as perceptions change, though supply still lags demand. Currently most senior housing facilities are high-end, catering to wealthy residents and housing a maximum of 15% of seniors nationally. The dominant model involves apartment rentals and nursing homes run by organizations. However, new models could attract investors by developing apartment units for sale with on-site care services paid through monthly fees. Investors could then bundle projects into real estate investment trusts to exit investments, taking advantage of Kenya's growing real estate capital markets to profit from the sector's attractive returns and increasing demand.

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    Senior Housing in Kenya

    Uploaded by

    JOSEPH KARANJA
    91 views2 pages
    Independent living communities for seniors are growing in Kenya as perceptions change, though supply still lags demand. Currently most senior housing facilities are high-end, catering to wealthy residents and housing a maximum of 15% of seniors nationally. The dominant model involves apartment rentals and nursing homes run by organizations. However, new models could attract investors by developing apartment units for sale with on-site care services paid through monthly fees. Investors could then bundle projects into real estate investment trusts to exit investments, taking advantage of Kenya's growing real estate capital markets to profit from the sector's attractive returns and increasing demand.

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    SENIOR HOUSING IN KENYA

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    Independent living communities for seniors are growing in Kenya as perceptions change, though supply still lags demand. Currently most senior housing facilities are high-end, catering to wealthy residents and housing a maximum of 15% of seniors nationally. The dominant model involves apartment rentals and nursing homes run by organizations. However, new models could attract investors by developing apartment units for sale with on-site care services paid through monthly fees. Investors could then bundle projects into real estate investment trusts to exit investments, taking advantage of Kenya's growing real estate capital markets to profit from the sector's attractive returns and increasing demand.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    91 views2 pages

    Senior Housing in Kenya

    Uploaded by

    JOSEPH KARANJA
    Independent living communities for seniors are growing in Kenya as perceptions change, though supply still lags demand. Currently most senior housing facilities are high-end, catering to wealthy residents and housing a maximum of 15% of seniors nationally. The dominant model involves apartment rentals and nursing homes run by organizations. However, new models could attract investors by developing apartment units for sale with on-site care services paid through monthly fees. Investors could then bundle projects into real estate investment trusts to exit investments, taking advantage of Kenya's growing real estate capital markets to profit from the sector's attractive returns and increasing demand.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    SENIOR HOUSING IN KENYA

    Independent Living communities are senior housing communities designed for independent
    seniors that desire the conveniences of community living. In Kenya senior housing has had little
    penetration owing to popular traditional African beliefs that tend to discourage people to take
    their loved ones in their golden years to retirement homes as this was deemed unafrican.
    However, with improved quality of life most people have changed their perceptions and now
    opt to go to retirement communities using savings made earlier in life. Seniors also do not want
    to burden their families and prefer a nice home to reside. The demand also emanates from the
    immigrants of Caucasian origin working locally who have no families to cater for them and they
    prefer to reside in Kenya. Here, senior citizens get to have an enriched lifestyle with
    recreational and educational opportunities such as swimming pool/spas, exercise facilities,
    clubhouses/lounges and library/reading lounges with the pleasure of living with likeminded
    peers. Others also provide assisted living services for the seniors either due to medical reasons
    or old age. Nationally, 2.7% or 1.2 million Kenyans are believed to be over 65 years of age with
    the number rising fast according to the 2009 census. Currently, most facilities are high end in
    nature catering for the privileged members of the society such as the Fair Seat Retirement
    Home in Rosslyn that charges monthly rates of up to US$ 900 to US $1,200 for apartment
    accommodation. The facility has a maximum occupancy of 35 residents with hundreds on the
    waiting list with bookings made up to the year 2040. Others include Kilulu retirement home in
    Mombasa, Charles Disney retirement home in Muthaiga and Harrison House along Ngong road
    that specifically caters for women. These facilities, including a few others not mentioned,
    collectively can accommodate for at most 15% of the country’s needs.

    The model mostly adopted in Kenya consists of apartment style rental units and nursing home
    set ups sponsored by well wishers, societal groups etc. The units/rooms are rented out on a
    monthly basis for certain duration. Following global best practice different models can be
    introduced that allows avenues for investors/developers to participate in the sector on a short
    term basis based on their investment horizon. One such strategy would be where investors may
    develop and sell the apartment suites complete with on site management entities to offer
    normal or palliative care and housekeeping services which can be paid using monthly service
    charge. Purchasers tend to sell their empty nests and are more comfortable investing in a
    smaller house offering the above services. The growth of Kenya’s real estate capital market has
    presented great avenues for investors. The introduction of Real Estate Invest Trusts (REITs) in
    Kenya has received good reception in the capital markets with the initial Income REIT managing
    to secure US $ 36 million in 2015. Through this, investors may develop the apartment style
    housing units for rental purposes to seniors then spin off the investment large scale in to an
    income REIT after construction and occupancy thereby exiting the project.

    The returns in the sector are very attractive owing to the existing increasing demand and low
    supply of accommodation in the country. We believe there are great opportunities in this highly
    untapped market segment.

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