, NAIROBI, Kenya, Jul 12 – The National Social Security Fund has officially kicked off construction works to complete the 39-storey Hazina Trade Centre in Nairobi.
Speaking when he presided over the function, Labour Cabinet Secretary Kazungu Kambi said the project has set the stage for NSSF’s strategic efforts to diversify their investment portfolio to cover high impact investment projects.
He said the fund will focus on high impact investments that guarantee a high return in the energy and infrastructural development sectors.
“My ministry fully supports the extension of Hazina Trade Centre as part of our commitment to guarantee the country’s social security agenda. By engaging in such an investment project, NSSF is investing its members’ funds with a profit objective,” he said.
“Profits and returns on investment accruing from this project will in turn be ploughed back to the fund.”
He said his “vision is to see a robust NSSF that guarantees its members an interest payoff of more than 10 percent in coming days.”
He said that such an interest payoff on members benefits is but one of the avenues to ensure that NSSF members’ benefits are adequate and do reflect the prevailing economic climate.
“I am alive to the fact that with a current payoff of 7.5 percent, NSSF is paying its members benefits well above the existing market rate but an opportunity to double this payoff does exist,” he added.
Speaking during the function, NSSF Managing Trustee Tom Odongo said they hope to generate Sh100 million monthly in rent.
NSSF Chairman Adan Mohammed said he was optimistic that the new Hazina Trade Centre will not only transform the skyline of Nairobi City but also act as Kenya’s Wall Street complex housing global financial services providers.
“As a progressive fund, we must always strive to engage in prudent, high impact investments that boldly seek to facilitate our national development,” he stated.
Besides Hazina Trade Centre, the chairman revealed that they want to develop a number of unused land belonging to the fund.
“Currently, we have an undeveloped land of 16 properties valued at more than Sh8.6 billion. Given the prevailing real estate vibrancy, it is only prudent to, progressively commence on the respective developments,” he said.
“Failure to engage in such developments may easily lead to unnecessary asset stripping which erodes the value of the fund.”
“Already, we are undertaking feasibility studies for the development of an international convention centre at our undeveloped plot along Kenyatta Avenue opposite Nyayo House. The Convention Centre will be, developed alongside a high-end luxury hotel property incorporating rental apartments at the prime city plot,” he revealed.
The tower will be constructed atop the existing eight-storey Hazina Trade Centre building that currently houses the Nakumatt Lifestyle Hypermarket store on Nairobi’s Monrovia and Mokhtar Daddah Streets.
The construction works on the building architecturally designed by local consultant’s Mruttu & Salmann Associates will be, undertaken by China Jiangxi International Kenya Limited- a locally incorporated international construction firm.