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Council turns to private capital in estates facelift
Rank: Veteran Joined: 7/22/2008 Posts: 1,139
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The council will be issuing a private bond ksh 100bn for the estate facelifts.They plan to build highrise buildings and are now inviting consultants to map the way forward to the project. Question,will this be actualised ?? kudos to the city council on the latest news.I hope this is not another white elephant but real walk the talk. The council's estate are dilapidated and look like slums which should be given facelifts like yesterday.just look at shaurimoyo few meters from CBD,kaloleni,makongeni,ziwani and the rest and you will hate kanju. "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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Rank: Veteran Joined: 7/22/2008 Posts: 1,139
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link iko hapa http://www.businessdaily.../-/4k315iz/-/index.html
Jisomee "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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Rank: Elder Joined: 6/19/2008 Posts: 4,268
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Halleluyah!! this is a good investment opportunity for the dare devils.... but, eeeeeh, i will let it pass.
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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Not bad!!! ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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The council is poor at managing it's current resources the only way it will work is if it privatizes the running and maintenance of the council houses etc.
I wish them all the luck but the only way i can invest in such a bond is if CBK/Gok act as security for the bond!
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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To go of topic what does a council allotment letter mean? Is it similar to a title? Do banks and mortgage companies accept allotment letter from the council?
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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@tony stark: Fat chance of that happening! Government would be stupid to the extreme to secure a municipal bond. Considering the amount of revenue that the council is capable of collecting regularly, it would be a great investment. But under the current circumstances, I would not touch it with a barge pole! There was a nice topic here that touched on municipals and how interesting they would be. See this http://wazua.co.ke/forum.aspx?g=posts&m=108204
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Rank: Veteran Joined: 7/8/2008 Posts: 947
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Sasha wrote:@tony stark: Fat chance of that happening! Government would be stupid to the extreme to secure a municipal bond. Considering the amount of revenue that the council is capable of collecting regularly, it would be a great investment. But under the current circumstances, I would not touch it with a barge pole! There was a nice topic here that touched on municipals and how interesting they would be. See this http://wazua.co.ke/forum.aspx?g=posts&m=108204 The only way i would trust a municipal bond in Kenya is if it is backed by the government. The default rate is lower for municipal bonds compared to corporate bonds but that is in the west in Kenya i would expect a huge reversal with municipal bonds having a pathetic default rate. If government does not secure the bond i can only trust the council if the whole process from managing and all that relates to the bond is under control by a reliable sub contracted private fund! Interesting discussion on the thread! I always thought it was too deep(read boring) now i just have to read the whole thread. Interesting. Cheers
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Rank: Veteran Joined: 7/22/2008 Posts: 1,139
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tony stark wrote:The council is poor at managing it's current resources the only way it will work is if it privatizes the running and maintenance of the council houses etc.
I wish them all the luck but the only way i can invest in such a bond is if CBK/Gok act as security for the bond! The govt may not back the council on this one unless the estates will be developed by the National Housing Cooporation. As for me,though am happy with the estates facelifts,I would not touch this bond even if the returns would be more than the CBK bond returns,reason is the failure rate in kanju is more.Considering the corruption and mismanagement,it would be too risky of a bond to touch. "You're not supposed to be so blind with patriotism that you can't face reality. Wrong is wrong, no matter who says it". Malcolm X
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Rank: Veteran Joined: 9/5/2007 Posts: 627
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@tony stark: True about default rates for municipals in the west. I would also imagine that if the council also chose to allocate more than 75% of the bond to corporates with a stake in the city, it would have many takers e.g. real estate developers and their subcontractors, schools/universities, transport companies etc! Only in a perfect world!
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Rank: Elder Joined: 12/9/2009 Posts: 6,592 Location: Nairobi
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I would never touch it. Not before we fully transit to the new constitution anyway. I don't know anyone or anything with worser reputation than the NCC. Not even Hitler. This would transform Ngilu and her Water ministry into angels.
BBI will solve it :)
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Rank: Member Joined: 5/3/2010 Posts: 145 Location: East Africa
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I wouldn't touch it even with a 50ft barge pole. The kanju can hardly manage its current resources, corruption is rife (although am told things are changing for the good), PR is pathetic.
I can't even fathom what would convince me to take part in this. I simply can't.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Wendz wrote:Halleluyah!! this is a good investment opportunity for the dare devils.... but, eeeeeh, i will let it pass. LOL!! NCC would need a consortium of 10 PR firms before they pull this off on local investors and it better be asset backed coz enyewe NCC does have some serious real estate that can be redeveloped!!
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Rank: Elder Joined: 5/27/2008 Posts: 3,760
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Crap. Nairobi is dead, killed by the counties. Jobs are moving to 46 different counties, who will be left in Nairobi?
Another point, Nairobi is also being killed by the emerging suburbs like Tatuu, Kitengela, Mavoko, etc. Proof? Look at Johannesburg. For those who have visited it, did you go to the city? No, because there is Sandton, Eastgate, Westgate etc.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Gordon Gekko wrote:Crap. Nairobi is dead, killed by the counties. Jobs are moving to 46 different counties, who will be left in Nairobi?
Another point, Nairobi is also being killed by the emerging suburbs like Tatuu, Kitengela, Mavoko, etc. Proof? Look at Johannesburg. For those who have visited it, did you go to the city? No, because there is Sandton, Eastgate, Westgate etc. Real talk and only KCB S&L has the lending capacity & requisite distribution network.
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Rank: Veteran Joined: 1/7/2010 Posts: 1,279 Location: nbi
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If it had a good premium above the GoK bonds, I'd definitely jump in with both feet. The Governor of Nyeri - 2017
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Rank: Member Joined: 8/5/2009 Posts: 597
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It will be so hard to pull off this but i wish they get good advisers on how to entice the investing populace to take the bond. One way they could organize for a sinking fund a/c. this would ensure at the end of the bond period its fully paid. How ? they plan to use KRA to help in collecting their revenues, before they pass the funds KRA would deposit a %age to the sinking fund account. Just saying. The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence
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Rank: Member Joined: 7/23/2009 Posts: 526
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Wa_ithaka wrote:If it had a good premium above the GoK bonds, I'd definitely jump in with both feet. me too. Accept no one's definition of your life; define your life.
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Council turns to private capital in estates facelift
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