Investors urged to pool resources

January 21, 2011

, NAIROBI, Kenya, Jan 21- Local investors have been urged to come together in large groups and raise capital that can be invested in infrastructure development projects.

Minister for Public Service Dalmas Otieno said locals firms should access loans and bid for big contracts and avoid having lucrative tenders going to foreign investors.

Doing so, he added, would go a long way in developing the country.

"It is capital that makes the difference. It is capital which will develop our country, it is capital that employs our people, and we had better prepare ourselves that even bigger projects are going to be achievable in this country. We have foreign construction companies coming to take all our contracts. We need to keep our capital in our country," the Minister said.

He was speaking during the launch of Migaa Homes, which is slated to be the largest gated community in the country and which will be funded by Equity Bank. The project, which will be on a 774 acre-land, is a brainchild of 100 shareholders who pooled together and acquired a loan of Sh1 billion.

Phase one of the homes is expected to be finished in the next 2 years.

"We loved one particular aspect of this concept, it allowed for integration and guarantee security for our fellow countrymen," Mr Otieno added.

Equity Bank Managing Director James Mwangi said the financing of the homes is in line with the bank\’s vision to contribute towards Kenya\’s long term development.

Mr Mwangi further added that when the board of the director approached Equity bank for financing, their loan was approved in record time as the investors had a concept that was innovative and had not was not heard of in the country to date.

"Kenyans have been very, very sceptical. What you see around Museum Hill (road construction) is Vision 2030 becoming a reality. Those are not pillars of roads. They are pillars of our Vision 2030. To the board of Home Africa, you have been able to create homes that are suitable for Vision 2030," the CEO said.

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