NAIROBI, Kenya- For more than 60 years, the Local Authorities Provident Fund (Lapfund) has built a reputation as one of Kenya’s most established retirement benefits schemes, managing billions of shillings in pension savings while investing in projects designed to generate stable, long-term returns.
With assets valued at Sh66.3 billion, Lapfund has increasingly turned to real estate as a cornerstone of its investment strategy, betting on residential developments that generate rental income while appreciating in value.
From Nairobi’s South B estate to Kisumu’s ambitious Makasembo Housing Project and the newly launched Bellevue Park Residences in South C, the pension fund says its focus remains on safeguarding members’ retirement savings through carefully selected property investments.
South B: A Reliable Income Generator
One of Lapfund’s longest-standing investments is its residential estate in South B, Nairobi.
The development comprises 30 apartment blocks with a total of 240 housing units, providing a steady rental income stream for the pension fund.
Each unit rents for an average of Sh10,000 per month, creating predictable cash flow that supports pension obligations while the underlying property continues to appreciate.
South B remains one of Nairobi’s sought-after middle-income residential neighbourhoods, with apartment prices ranging from about Sh3.5 million to Sh10 million, depending on the unit size.
According to Lapfund, investing in established residential areas helps protect members’ savings by anchoring them in tangible assets that retain and grow their value over time.
Makasembo Estate Transforming Kisumu
Lapfund has also expanded its real estate footprint beyond Nairobi through the Makasembo Housing Project in Kisumu.
The Sh3.5 billion development is being undertaken in partnership with the Kisumu County Government on an 11.6-acre site.
Once complete, the project will deliver 1,870 housing units, targeting both low- and middle-income homebuyers.
Housing options include:
- One-bedroom affordable units starting from Sh1.8 million.
- Two- and three-bedroom apartments targeting middle-income buyers.
The first phase, comprising 910 housing units, was commissioned by President William Ruto in May 2025, with additional phases currently under construction.
The estate includes a range of supporting amenities such as:
- Boreholes to improve water reliability.
- Solar power installations.
- High-speed lifts.
- Landscaped gardens.
- Children’s playgrounds.
- Nursery school and daycare facilities.
- Retail shops.
Lapfund says the project not only expands access to affordable housing but also strengthens the long-term value of its investment portfolio.
Bellevue Park: The Next Investment Frontier
The latest addition to Lapfund’s property portfolio is Bellevue Park Residences in Nairobi’s South C area.
The mixed-use development will comprise 2,356 modern apartments, making it one of the pension fund’s largest housing investments to date.
Prices include:
- Studios from Sh3.715 million.
- Three-bedroom apartments from Sh16.28 million.
The project is designed for urban homeowners and investors seeking modern amenities, including:
- Biometric security systems.
- Powered lifts.
- Italian-fitted kitchens.
- Health centre.
- Daycare and kindergarten.
- Recreational facilities.
According to Lapfund, Bellevue Park continues its strategy of investing in high-demand residential developments capable of delivering sustainable returns while meeting Kenya’s growing demand for quality housing.
Protecting Pensioners Through Property
Lapfund says its investment philosophy is built on three key objectives:
- Generating stable rental income to support pension payments.
- Growing the value of members’ savings through long-term capital appreciation.
- Protecting retirement funds by investing in tangible assets that are less vulnerable to market volatility.
As Kenya’s urban population continues to grow, the pension fund believes residential real estate will remain a key driver of both financial returns and long-term security for its members.
For prospective homeowners and investors, Bellevue Park Residences also offers an opportunity to own property in a development backed by one of Kenya’s longest-serving pension funds while contributing to a broader investment strategy aimed at securing retirees’ futures.