DUT FREQUENTLY ASKED QUESTIONS (FAQs)
founders, developers & trust
The founders of Diaspora University Town (DUT) and Diaspora University are Diaspora Kenyans, Ndara B Community and Partners. The university and town development is by Diaspora University Trust in accordance with the Master Development Plan and other written conditions and agreements.
Diaspora University Trust is incorporated in accordance with the Trustees (Perpetual Succession) Act.
Through a Trust Deed, the Trust received the resources established by the founders, and Trustees were
appointed to develop Diaspora University with these resources. The Diaspora University assets, by the
end of 2023, were valued at Ksh 3.2 billion.
No. A Trust is not established through share capital. A Trust is established through donations that
become the capital. On the other hand, shares are issued by companies incorporated in accordance with
the Company Acts.
A person who signs the Diaspora University Town (DUT) – Town House Investment and Development
Agreement (THIDA) and invests capital in accordance with the THIDA becomes a founder of the
university as per the provisions of Diaspora University founding. The main reason for considering a
Townhouse Developer as a founder of the university is that the townhouses are part of the university's
founding. The townhouses will support the university by providing housing for faculty and staff.
A property developer puts in the capital to develop the property and owns the property at the start of
construction. A property buyer purchases a completed property and owns it when it is finished.
20,000 jobs creation
The project will create 15,000 jobs at Diaspora University Town and 5,000 at Ndara B 4,000 acres plan as tabulated.
| JOBS PLANS | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Diaspora University & Hospital | 300 | 450 | 1,500 | 2,000 | 2,500 |
| Town | 300 | 350 | 400 | 450 | 500 |
| Design – Build | 1,600 | 3,000 | 3,000 | 3,000 | 2,000 |
| MSMEs | 800 | 2,200 | 5,100 | 7,550 | 10,000 |
| Diaspora University Town Jobs | 3,000 | 6,000 | 10,000 | 13,000 | 15,000 |
| Ndara B 29 MSMEs Jobs | 2,000 | 4,000 | 5,000 | 5,000 | 5,000 |
| TOTAL | 5,000 | 10,000 | 15,000 | 18,000 | 20,000 |
25,000 town residents
As the 20,000 jobs are created and the human population grows by nature; a town of 25,000 residents will emerge. The Kenya Constitution rights to be achieved are: 42. Every person has the right to a clean and healthy environment; 43. (1) Every person has the right— (b) to accessible and adequate housing, and to reasonable standards of sanitation; (d) to clean and safe water in adequate quantities; 53. (1) Every child has the right—(c) to basic nutrition, shelter and health care.
| RESIDENTS PLANS | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Children Under 18 years | 200 | 3,000 | 5,000 | 7,500 | 10,500 |
| Adults 18 years – 65 years | 800 | 3,500 | 6,000 | 9,000 | 12,500 |
| Adults Over 65 years | – | 500 | 1,000 | 1,500 | 2,000 |
| TOTAL | 1,000 | 7,000 | 12,000 | 18,000 | 25,000 |
diaspora university & hospital
The finance plan for Diaspora University is based on the endowment achieved and the provisions in the
Master Development Plan, as tabulated:
The endowment will fund: KSh 5.4 billion for Property and Equipment Finance; KSh 665 million for
MSME Investments; and KSh 14 billion for the Students Finance Fund. As the first class graduates,
Diaspora University assets will be about KSh 30 billion. The assets will be financed by an endowment of
KSh 20 billion, loans of about KSh 10 billion, and other donations from philanthropists.
| ENDOWMENT (CAPITAL) | KSH | NOTES |
|---|---|---|
| Balance Sheet (Dec 2023) | 3,200,000,000 | Valued through property and other assets |
| Development Income | 2,800,000,000 | Town and property development income |
| Returns from Investments | 5,000,000,000 | Profits from MSMEs and value growth |
| MSMEs Save-Invest Plan | 5,000,000,000 | Shares of MSMEs released to investments |
| Government Incentives (National & County) | 4,000,000,000 | Tax incentives through SEZ & County Bill |
| Total | 20,000,000,000 |
The university intake plan will grow to 5,000 students. 1,000 faculty and staff jobs will be created. The
budgets are as tabulated:
| PERIOD | STUDENTS | BUDGET (Ksh) | MONEY SOURCE | APPLICATION |
|---|---|---|---|---|
| Pre-Intake | 200,000,000 | • Endowment • Founding Costs • Registration Costs • Faculty – Staff Pay |
• Registration • Faculty/Staff Pay • Buildings/Loan • Environment • Labs/Sports/Library • Students Expenses • Research, Consultancy • Project Centers |
|
| Year 1 | 1,000 | 750,000,000 | ||
| Year 2 | 2,000 | 1,300,000,000 | ||
| Year 3 | 4,000 | 2,400,000,000 | ||
| Year 4 | 5,000 | 3,000,000,000 |
The hospital is for meeting the healthcare rights of the 5,000 university students, 25,000 town residents,
Taita Taveta County residents, and Kenyans.
Kenya Constitution 43. (1) Every person has the right— (a) to the highest attainable standard of health, which includes the right to health care services, including reproductive health care; (2) A person shall not be denied emergency medical treatment.
The hospital development plan will start at Level 2/3 and progress to Level 5/6. Below, revenue and usage budgets are planned to be achieved. The budgets will support the creation of 1,500 medical hospital jobs as per Level 5/6 requirements.
Kenya Constitution 43. (1) Every person has the right— (a) to the highest attainable standard of health, which includes the right to health care services, including reproductive health care; (2) A person shall not be denied emergency medical treatment.
The hospital development plan will start at Level 2/3 and progress to Level 5/6. Below, revenue and usage budgets are planned to be achieved. The budgets will support the creation of 1,500 medical hospital jobs as per Level 5/6 requirements.
| PERIOD | BUDGET (KSH) | MONEY SOURCES | MONEY USAGE |
|---|---|---|---|
| Pre-Univ | 50,000,000 |
• DUT Healthcare Program (20,000 jobs, 5,000 students & others.) • Government Insurance Funds • Government Payments • Diverse Insurance Payments • Cash |
• Space Rent • Building Loan Repay • Hospital Operation Budget • Diagnostics • Medicines • Management |
| Year 1 | 250,000,000 |
• DUT Healthcare Program (20,000 jobs, 5,000 students & others.) • Government Insurance Funds • Government Payments • Diverse Insurance Payments • Cash |
• Space Rent • Building Loan Repay • Hospital Operation Budget • Diagnostics • Medicines • Management |
| Year 2 | 600,000,000 |
• DUT Healthcare Program (20,000 jobs, 5,000 students & others.) • Government Insurance Funds • Government Payments • Diverse Insurance Payments • Cash |
• Space Rent • Building Loan Repay • Hospital Operation Budget • Diagnostics • Medicines • Management |
| Year 3 | 2,000,000,000 |
• DUT Healthcare Program (20,000 jobs, 5,000 students & others.) • Government Insurance Funds • Government Payments • Diverse Insurance Payments • Cash |
• Space Rent • Building Loan Repay • Hospital Operation Budget • Diagnostics • Medicines • Management |
| Year 4 | 4,000,000,000 |
• DUT Healthcare Program (20,000 jobs, 5,000 students & others.) • Government Insurance Funds • Government Payments • Diverse Insurance Payments • Cash |
• Space Rent • Building Loan Repay • Hospital Operation Budget • Diagnostics • Medicines • Management |
The property and equipment will be financed by endowment and loans as tabulated. The budgets of the
University, Hospital, and Town will repay the loans.
| PROJECT | BUDGET (KSH) | FINANCED BY |
|---|---|---|
| University Buildings and Fields | 6,000,000,000 |
• Endowment (Ksh 5.4 billion) • Property and Equipment Loans (About Ksh 10 Billion) |
| Hospital Buildings | 3,500,000,000 | |
| Technical High Buildings and Fields | 2,200,000,000 | |
| Recreation Park | 1,500,000,000 | |
| Town Buildings, Dam & Structures | 1,930,000,000 | |
| TOTAL | 15,130,000,000 |
town plan
The town plan consists of the 3,778 properties serviced by a 60 km road and infrastructure network, a
settlement of 25,000 residents, and a plan to establish Town Departments that will progressively
develop and sustain the town. Diaspora University Trust is developing the town and aims to achieve an
operational budget that will create 500 jobs, especially in environmental sustenance, as tabulated:
| PERIOD | BUDGET (KSH) | SOURCE | APPLICATION |
|---|---|---|---|
| Pre-Univ | 160,000,000 |
• Endowment • Property Rates/Fees • Environment Revenue • Parking Fees • Other Fees |
• Plans and Systems • Building Loan Repayment • Equipment Loan Repayments • Town Development Budget • Town Operation Budget |
| Year 1 | 265,000,000 | ||
| Year 2 | 480,000,000 | ||
| Year 3 | 693,000,000 | ||
| Year 4 | 1,000,000,000 |
Through the town departments and budgets, the following services will be financed and provided: Town management, Environment Sustenance, Clean Water, Clean air, Waste Management, Wastewater Management, Security, Fire Stations, Roads Maintenance and others as residents may progressively add as they settle.
Yes. All the 60km road network of streets and avenues will be paved.
81 properties of the 3,778 are allocated to become town properties. The properties will be financed by the Diaspora University Trust property budgets. Once the development plan is completed, the properties shall be passed to the town system.
The water sources include the Voi River, boreholes, Mzima Springs, Njoro Springs, Sagalla Dam, Mughe
Dam, Lake Challa, and other sources. The water plan will ensure a clean, uninterrupted water supply.
The clean water will be supplied through tanks and a 60 km clean water infrastructure.
The energy will come from the power grid. Other energy sources are incorporated, including installing
solar panels on all the roofs of townhouses and converting waste to energy.
msmes and organizations
These are the business and origination plans that will: supply products and services to the town residents and ensure economic, social, children's, and environmental rights are attained every day; support the Town Operation, Management, and Environment plans; ensure the Town residents' needs are met; supply goods and services to the University operation plan; meet the students' food, housing, and social needs; supply the Medical Hospital operation plan with goods and services; and produce and supply other goods and services to the town, Kenyans, and export markets.
About 300 MSMEs and organizations will operate from properties built on 140 plots that include the following: Basic and Vocational Education Schools; Manufacturing Industries; Environmental Management MSMEs; Healthcare and personal beauty products and services MSMEs; Vehicle sales, repairs, fueling, and spares shops; Household goods, food retail outlets, and other consumer goods outlets; Restaurants, hotels, and tourism services; Diverse Professional Services, Financial Services, and other services and products.
The 300 MSMEs will create 12,000 jobs.
Ndara B Community is starting 30 MSMEs that will produce building material, water, and farming
products. Through the 30 MSMEs the community will make 4,000 acres of land productive and create
5,000 jobs.
The revenue of the 300 MSMEs will come from the budgets of the university, town, design-build,
MSMEs, and others. Twelve thousand jobs will be created by the revenue, which will grow to surpass
Ksh 100 billion.
The main MSMEs are Daktari Biotechnology for medicine and vaccine production; Design Build Company
for the design and building of roads, infrastructure, and property; and DUT Credit Ltd for finance. The
three MSMEs are expected to each pass the Ksh 10 billion revenue mark by year four as they prepare to
expand their markets in Kenya and Africa, creating jobs for the students graduating from Diaspora
University.
Yes. About 200 of the 300 MSMEs and organizations will be opened at Diaspora University Town by
individuals as sole proprietors or partnership businesses. Priority will be given to the founders who are
Townhouse Developers and Ndara B Community members.
Individuals can also invest in MSMEs through the establishment of a company in accordance with the Company Act through share capital.
Individuals can also invest in MSMEs through the establishment of a company in accordance with the Company Act through share capital.
design-build plan
The 1,500 acres design build plan includes: the 3,778 plots; the 60 km road network; the plots allocation to Diaspora University plans, Town Plan, MSMEs/Organizations plans, Residential and Roads; 4,000 building or structures to be erected; 6,900 properties development and registration; and, 6.900 properties finance plan.
| PLOTS/USAGE | ACRES | PLOTS | BUILD | PROPERTIES | FINANCE PLAN |
|---|---|---|---|---|---|
| Diaspora University |
• Trust Endowment • University Budgets • Bank Loans |
||||
| University Campus | 155 | 1 | 40 | 1 | |
| University Fields and Parks | 70 | 1 | 5 | 1 | |
| University Recreation Parks | 139 | 2 | 10 | 1 | |
| Tech High School | 39 | 1 | 5 | 1 | |
| Town |
• Trust Endowment • Town Budgets • Bank Loans |
||||
| Town Park and Sewer Plant | 47 | 1 | 4 | 1 | |
| Cemetery | 47 | 1 | 2 | 1 | |
| Town Offices and Other | 17 | 10 | 30 | 10 | |
| Parks | 16 | 69 | |||
| MSMEs and Organizations |
• Trust Investments • MSMEs Investments • Individual Investments • Bank Loans |
||||
| Daktari Biotechnology Ltd | 11 | 1 | 3 | 1 | |
| DUT Credit Ltd | 3 | 1 | 1 | 1 | |
| Design Build | 9 | 1 | 4 | 1 | |
| DUT Materials | 9 | 1 | 1 | 1 | |
| Schools and Fields | 36 | 7 | 20 | 7 | |
| MSMEs and Organizations | 161 | 128 | 320 | 128 | |
| Residential |
• Individuals Capital • Trust & MSMEs • Mortgages |
||||
| 3,500 Town Houses | 403 | 3,500 | 3,500 | 3,500 | |
| 3,200 Apartments | 47 | 8 | 10 | 3,200 | |
| Other Residential Houses | 10 | 45 | 45 | 45 | |
| Roads and Infrastructure | • Property Budgets | ||||
| 60 km Roads & Infrastructure | 281 | ||||
| Total | 1,500 | 3,778 | 4,000 | 6,900 |
The 5-year design-build plan includes the construction of 60 km of roads/infrastructure and about 3,750
structures and buildings. The construction will be done through 300 design-build production contracts as
follows: 175 contracts for 20 townhouses; 20 contracts for 3 km of roads/infrastructure; 10 contracts for
320 apartment buildings; 35 contracts for 35 university buildings and structures; 12 contracts for 12
town buildings and plants; and 48 contracts for 48 MSMEs/organizations buildings. Contracts will range
from 4 weeks to 50 weeks.
The estimated construction budget for the 300 contracts is Ksh 39.5 billion. The amount will be applied
as tabulated:
| CATEGORY | AMOUNT (KSH) |
|---|---|
| NDARA B | Ksh 12 BILLION |
| WORKERS | Ksh 11.5 BILLION |
| OTHER | Ksh 12 BILLION |
| MSMEs | Ksh 4 BILLION |
townhouses development
The Townhouse development cost is broken into two parts: Developer Capital of Ksh 750,000 per unit
for a 50ft x 100ft plot allocation and House Development Cost (HDC) of Ksh 6.5 million per unit. The total
development budget for the 3,500 townhouses is Ksh 22.75 billion, which is 60% of the Ksh 39.5 billion
budget.
The house development cost (HDC) or sale price will be financed through long-term mortgages. The
KMRC mortgage product offers up to Ksh 10.5 million, with a single-digit interest rate and a 25-year
tenor. The townhouses will create a new business of about Ksh 25 billion in mortgages for KMRC and the
financial institution that will be the primary mortgage lender.
apartments & other residentials
The investment in apartments will start much later. Preference will be given to those selling townhouses and the persons taking up jobs.
The investment in the other residential houses is preserved for the Trust, Townhouse Developers and persons taking up jobs. Diaspora University Trust is incorporated in accordance with the Trustees (Perpetual Succession) Act. Through a Trust Deed the Trust received the resources established by the founders and Trustees were appointed to develop Diaspora University with the resources. The Diaspora University assets by the end of 2023 were valued at Ksh 3.2 billion.
finance plan
The finance plan for operations and properties is as tabulated.
| PLANS | PLAN (KSh) |
FINANCING SOURCE |
|---|---|---|
| DIASPORA UNIVERSITY | ||
| Town Development Budget | 60,000,000 | - Trust Endowment |
| Pre-University Opening Budget | 30,000,000 | - Trust Endowment |
| 15 MSMEs Investments | 65,000,000 | - Trust Endowment |
| Construction Finance | 1,000,000,000 | - Trust Endowment/Bank Loan |
| University & Town Buildings & Equipment | 15,000,000,000 |
- Trust Endowment...................Ksh 5.4 Billion - Property Loans & Equipment's...9.6 Billion** |
| University Budget (Year 1 to 4) | 7,450,000,000 |
- Students Cash - Trust Endowment -- Students Finance Fund of Ksh 14 billion. - MSMEs and Government Grants |
| 15 Diaspora University Trust MSMEs Property & Equipment | 10,000,000,000 |
- Endowment..........................Ksh 665 million - Share Capital Investments... Ksh 4.5 billion - Property & Equipment Loans...Ksh 5 billion |
| NDARA B MSMEs | ||
| 30 Ndara B MSMEs Plans, Equipment & Vehicles | 1,100,000,000 |
- Trust Endowment.....Ksh 100 million - Banks Loans...............Ksh 1 billion |
| 285 DUT MSMEs | ||
| 285 MSMEs Plans, Buildings, and Equipment. | 30,000,000,000 |
- Owners Capital Investments...Ksh 10 billion - Property & Equipment Loans..Ksh 20 billion |
| RESIDENTIAL HOUSES | ||
| Construction Finance | 1,000,000,000 | - Bank Loan to Diaspora University Trust |
| 3,500 Townhouses | 35,000,000,000 |
- Developers/Owners Capital...Ksh 10 billion - Mortgages to individuals..Ksh 25 billion |
| 3,200 Apartments | 10,000,000,000 |
- Developers Capital.....Ksh 1 Billion - Mortgage to individuals....Ksh 9 Billion |
| Other Residential | 800,000,000 |
- Developers/Owners Capital.Ksh 400 million - Mortgage to Individuals.....Ksh 400 million. |
The 5 year development plan is estimated to achieve Ksh 150 billion new wealth that is held as assets that is financed by capital, Ksh 80 billion and loans, Ksh 70 billion as follows:
| ASSETS | CAPITAL | LOANS | |
|---|---|---|---|
| Diaspora University Trust | 30,000,000,000 | 20,000,000,000 | 10,000,000,000 |
| Individuals and MSMEs | 120,000,000,000 | 60,000,000,000 | 60,000,000,000 |
| TOTAL | 150,000,000,000 | 80,000,000,000 | 70,000,000,000 |
Yes. Kenya Banking has been growing deposits mainly based on remittances. In 2023 the deposits grew by Ksh 900 billion. In the 5 years this plan will be implemented the deposits can grow by over 5 trillion and the Ksh 70 billion financed.
Yes. Finance can be invested through financing MSMEs as share capital or loans. Finance can be invested to be applied to give loans.