Construction is scheduled to begin this month on Tatu City, a US$ 5 billion residential complex in Kiambu County.
Renaissance Partners, the investment arm of Russian Renaissance Capital Financial Holdings Ltd., and the co-owners of the project, told Bloomberg on Thursday that the first stage of the 11-phase project is scheduled to begin before the end of this month.
“The first phase of Tatu City will kick off later this month and is expected to be completed by the fourth quarter of 2013,” said Arnold Meyer, Renaissance Partners’ managing director for real estate in Africa.
Located 15km north-east of Nairobi, Tatu City involves construction of a mix-use new city on a 2,500-acre parcel of land behind Kenyatta University – expected to host 62,000 residents on completion.
“Besides the residential area, phase one – sitting on 168-acres of land – will include shopping malls, hotels and offices. It will also include construction of roads, water, sewerage, electricity and probably piped gas,” Mr Meyer said.
The 11 phases of the project are expected to be completed in 8-11 years depending on the demand.
Tatu City project, the biggest of its kind in the country, is 50 per cent owned by Renaissance Partners with the remaining shares being held by several foreign and local investors led by former CBK governor Nahashon Nyaga.
Renaissance has been involved in a 15 month legal battle with a local partner over the ownership of the land north of Tatu City, the verdict of which Meyer believes will be delivered soon by the Kenyan High Court soon.