Wake Up and smell the chalk dust: packaging investment grade education projects

Wake Up and smell the chalk dust: packaging investment grade education projects

Cytonn College Of innovation and entreprenership

Wake Up and smell the chalk dust: packaging investment grade education projects

With the roll out of the new 2-6-3-3-3 curriculum to replace the 32-year-old 8-4-4 system, potential investment in education has spurred.

Kenya is seeking new approaches to help teachers best serve the unique circumstances they face daily in the classroom and an education system that best address the needs of a developing economy and propel it to the heights of industrialization according to Darius Mogaka Ogutu, Director of Policy, Partnerships, and East African Community Affairs - Ministry of Education.

With private sector investment in education tailored for the previous tautology, the change is attracting an unprecedented level of investment targeting knowledgeable customers who seek quality education for their children.

Cytonn Investments has set up a new college, located at the Queensway Building on Kaunda Street in the CBD, its flagship college for vocational and technical training, with a focus on innovation and entrepreneurship as a distinguishing factor for all graduates.

The firm which already runs an Early Childhood Development Education center (ECDE), Primary Schools, Secondary Schools and Tertiary Institutions in its real estate investments has launched a holding firm for the schools meaning it intends to run them as a brand.

Cytonn Education Services (CES) will deliver education facilities in comprehensive mixed-use communities developed by Cytonn Real Estate including RiverRun Estates in Ruiru, The Alma in Ruaka, The Ridge in Rideways, and NewTown in Athi River.

Edwin Dande, Cytonn Investments Chief Executive Officer said that the initiative enables them to diversify revenue streams away from investments and real estate, to education, which is an annuity business.

This follows other private equity acquisitions in the Kenyan market including investment in Brook House School by Africinvest, investment in Hill Crest by Fanisi, investment in Brook House again by Educas.

KCA University has received investment from Emerging Capital Partners from Washington DC and most recently the investment by Advtech in Makini Schools.

Cytonn Education Services (CES) says its vehicle will enable them package attractive private equity opportunities in education for its investors.

Mr. Dande said the need to package the attractive returns in the education sector for local high net worth and institutional investors has informed their present move.

Local investors have typically been relegated to only equities and fixed income, which collectively has returned 10 to 12 percent per annum compared to private equity and investment grade real estate, which have returned 20 to 25 percent per annum with an added niche in providing this clientele with an education package under mixed-use developments.

Cytonn Centre for Affordable Housing and manufacturing will focus on developing graduates with an entrepreneurial spirit. Top graduates in technical areas such as plumbing, electrical and masonry will be guaranteed jobs in its real estate projects.

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