By Dennis Gichuiri
Fusion Group has announced plans to invest up to Sh8 billion in a new housing development as the company marks 20 years of operations in Kenya and across East Africa.
Chief guest Dr Julius Kip’ngetich said the company’s two-decade journey demonstrated confidence in Kenya and the wider African market while challenging the firm to deepen its roots locally and maintain high standards of integrity.
Kip’ngetich said Fusion Group had grown from a small investment company into a diversified business with interests including real estate.
“For a company to have started off a small investment and have grown now to what they are going to grow into real estate, it’s a mark of confidence in Kenya and the five African countries that they are in,” he said.
He encouraged the company to expand into other African markets while continuing to invest heavily in Kenya.
Fusion Group Chief Executive Officer Daniel Kamau said the company was entering a new phase of growth as it seeks to expand its contribution to the housing sector.
One of the projects highlighted during the anniversary celebrations is a 150-acre development expected to comprise about 600 homes.
According to Kip’ngetich, work on the project has already started, with master planning approvals secured and infrastructure installation underway.
The first phase of land acquisition and development is expected to cost about Sh2 billion while the full development could reach approximately Sh8 billion.
Kamau said Fusion intends to continue operating in three key areas, namely fund management, property development and housing.
The company is also positioning Fusion Estates as a new brand focused on supporting homeownership through planned communities.
The company said it wants to move away from simply selling plots and instead provide ready-to-build properties with infrastructure such as roads, street lighting and security installations already in place.
Kip’ngetich said the company’s focus on planned communities comes at a time when counties are increasingly developing integrated strategic urban plans aimed at controlling land use and preventing unplanned settlements.
He said Fusion Estates was created partly in response to concerns over fraud in the property market, including cases where buyers pay for land but fail to receive titles or the promised developments.
The company said its 20-year development track record would help it build confidence among homebuyers.
On affordability, Kip’ngetich said Fusion was targeting the middle-class segment, which he argued still faces significant challenges in accessing housing because of the high cost of mortgages.
He estimated that a property could involve land worth about Sh3 million and an additional Sh7 million to Sh8 million for construction, keeping the overall cost below Sh10 million.
He said mortgage repayments could range between Sh50,000 and Sh85,000 depending on the property price, lending institution and mortgage period.
Kip’ngetich said the middle-class housing market remained significant despite Government efforts to promote affordable housing for lower-income households.
“Access to housing still remains a strain to the majority of Kenyans,” he said, adding that Fusion was seeking to address part of the gap through planned developments.
At the anniversary event, Kip’ngetich also challenged the company to make integrity a central part of its operations.
He said investors and homebuyers needed companies they could trust and argued that strong institutions, the rule of law and effective justice systems were important in attracting investment.
“I would like the Fusion Group to lead with integrity,” he said.
He welcomed the company’s recognition through an ethical conduct award, saying this could help demonstrate its commitment to customers and investors.
Kip’ngetich also pointed to Africa’s expanding middle class as a potential driver of future demand for housing and other investments.
He said rising incomes across the continent would create new opportunities for companies investing in Africa.
Fusion Group said its 20-year journey had contributed to employment creation and economic activity across East Africa.
The company now plans to use its experience to expand its real estate and housing portfolio while exploring opportunities in other African markets.
The 600-home development is expected to be completed within about 24 months from the start of the project.
