THE PROPOSED KMA COMPLEX

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• THE PROPOSED KMA COMPLEX

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THE PROPOSED KMA COMPLEX
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INTRODUCTION

• Kenya Medical Association (KMA) is a voluntary
  organisation open to all medical and dental
  practitioners registered in the republic of
  Kenya. It was founded in 1968, and incorporated
  in 1973 under the Companies Act Cap 486 as a
  company limited by Guarantee.
• Over the years, KMA has relied heavily on
  donations to run its affairs which has made it
  very challenging to meet all it objectives which
  include but not limited to
• Promote medical and allied science and support
  high standards of medical ethics and conduct

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Objectives Cont.

• Hold scientific, medico-political and social
  meetings for doctors and support continuing
  professional development (CDP)
• Give grants for promotion of medical and allied
  Sciences
• Support or oppose any legislation which may
  affect the medical profession
• Promote the welfare of doctors and assistance to
  the family of beareaved/deceased member

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INCOME GENERATION

• In order to generate income, KMA proposes to
  build the Kenya Medical Association Complex on
  its own plot L.R. No. 209/11335 at the Junction
  of Chyulu and Mara Roads in Nairobi

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PROJECT DETAILS

• The Complex will constitute three separate
  components as follows
• 78 fully furnished executive hotel apartments for
  rent
• 1 bedroom 24 units, 2 bedroomed 30 units and 3
  bedroomed 24 units
• Common room, Laundry, caretaker etc
• Reserved basement parking spaces per apartment
• Separate entry/exit on Chyulu Road

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Project Details Cont..

• An Office block comprising 7 storeys.
• Total office space of 7050 square that can be
  used for consultant
• Offices, physiotherapy, laboratory services,
  pharmacy, X-Ray departments etc
• Service ducts for electricity, water, sewer,
  telephone, fiber optic cable and TV on all floors
• A large amphitheatre, exhibition halls, shops,
  lecture halls, conference rooms and a
  library/resource centre occupying 1175 square
  metres
• Secure surface and basement parking
• Separate entry/exit on Mara Road

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Project Details Cont..

• Recreation Centre
• A health club on ground floor occupying 620
  meters for rent
• A restaurant on first floor occupying 620 square
  meters for rent
• A swimming pool
• Other facilities include a standby generator and
  bore hole.
• NB The Complex will be let and managed by a
  reputable estate agent.

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OWNERSHIP AND FUNDING

• The estimated total project cost is Ksh. 1.75
  billion.
• The project is being undertaken as a joint
  venture between KMA as the principal and KMA
  SACCO, KMA Housing SACCO, specialists
  associations and individual doctors
• To this effect, KMA has registered the Kenya
  Medical Investment Company (KMIC) Limited a
  public Liability Company, to mobilise resources,
  develop, manage and own the KMA Complex

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KMAS SHAREHOLDING

• KMA holds 60 of the shares in Kenya Medical
  Investment Company Limited
• It will therefore own 60 of the project at
  completion and any income accrued in the same
  proportion.
• It has contributed 3 acres of land currently
  valued at Ksh. 270 Million
• It has negotiated a loan facility with Commercial
  Bank of Africa to cover 60 of the project cost.

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OTHER SHAREHOLDERS

• KMA is currently selling the balance or 40 of it
  shares to KMA SACCO, KMA Housing SACCO,
  Specialists Association and individual doctors to
  raise 40 of the project costs
• 40 of the project cost is only 16,000 shares
  available at a price of Ksh. 50,000 per share.
  The value of the share will appreciate from
  ground breaking and therefore the price will also
  be adjusted upwards from time to time
• The minimum number of share is one and there is
  no upper limit
• Shares will be issued on first come first served
  basis and if oversubscribed will be issued
  prorate to the application.
• The shareholders will jointly own 40 of the KMA
  Complex and accrue an income of the same
  proportion prorated as per share holding

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DONE SO FAR

• Over Ksh. 17 million has been raised so far
  by sale of shares in KMIC and has been used to do
  the following
• Outstanding land rates to NCC of over 8 million
  paid up in full
• Environmental impact assessment report
• NEMA License
• Financial Assessment Report

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Done So Far Cont..

• NCC Architectural and structural drawings
  approval
• Prequalification of contractors
• Tendering process
• Legal fees
• Loan Mobilisation Fees

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TENDERING

• THE TENDER HAS BEEN AWARDED Fixed contract sum
• Construction to start in 2008 and is expected to
  take 24 30 Months

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SALE OF OFFICE SPACE

• 1,000 square meters will be reserved for KMA
• 3020 square will be pre-sold principally to
  specialists associations and other as the board
  of KIMC would deem fit to raise additional
  revenue for construction. Only 67 units available
• Minimum office space is 45 square meters
• Current market value office in upper hill is
  approximately Ksh. 120,000 per square meter or
  5.4 million for one office

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MODE OF PAYMENT

• Cheques drawn in favour of Kenya Medical
  Investment Co. Ltd
• NO CASH WILL BE ACCEPTED AT THE KMA OFFICES
  AND NO CASH SHOULD BE PAID TO ANY OF THE
  APPOINTED SELLING AGENTS.

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CONDITION FOR SALE

• Kenya Medical Investment Company Ltd. Has been
  incorporated for the sole purpose of the KMA plot
  development
• The sale and transfer of shares shall be as per
  the memorandum and articles of association of the
  company rules as set out by the board from time
  to time
• It will be the sole responsibility of the
  individual and/or institution to declare and pay
  tax to the relevant authorities as specified by
  the income tax act

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BENEFIT TO KMA

• A gross income of over 10 million per month for
  the Association
• An asset worth over 2.2 billion on completion of
  the project with an estimated annual income of
  206 million
• Economic empowerment of the doctor
• Stronger and financially self sustaining
  organisation that can meet its objectives

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BENEFITS TO SPECIALISTS SOCIETIES

• Secure, ample parking and office space
• Saving on rent or eliminate need for rent
• Within the same building as other bodies of
  similar interests
• Easy access to large pool of funds for
  conferences, research, expansion of diagnostic
  and other services that would be too expensive to
  invest in as an Association or individuals

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Benefits To Specialists Cont

• Access to conference rooms, a large amphi
  theatre, exhibition halls, library, restaurant
  and accomodation facilities for conference
  participants
• Fibre optic internet connectivity and state of
  the art communication equipment
• Source of income from invested shares depending
  on number of shares held

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BENEFIT TO INDIVIDUAL DOCTORS

• Growth of share value from Ksh. 50,000 to about
  Ksh. 65,000 just at the completion of
  construction in 24 months (30 growth)
• A gross annual income of 82 million shillings to
  be divided among doctors prorated to shareholding
• Scholarships
• Sponsorships for conferences

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Benefit to Doctors Cont.

• Cheap loans from pooled for both personal and
  professional self development
• Within walking distance to Kenyatta National
  Hospital (KNH), Nairobi Hospital and City Centre
• One stop point for all healthcare services and
  Social facilities
• Realise and release financial power of pooling
  together to fully benefit from Kenya vibrant
  economy

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HOW TO PARTICIPATE

• Buy shares of the Kenya Medical Investment
  Company Limited as individual KMA members/doctors
  at Ksh. 50,000 per share. The process is going on
  but the number of share available are only 16,000
• KMA Divisions, Specialist societies, KMA SACCO
  and KMA Housing can buy shares as cooperates in
  the Kenya Medical Investment Company Limited
• Specialists societies can negotiate to pay office
  space
• Subscriptions forms are available at KMA HQ,
  divisions or can be downloaded from KMA Website
  www.kma.co.ke

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• IT IS TO YOUR ADVANTAGE TO BUY SHARE EARLY BEFORE
  THE PRICE IS ADJUSTED UPWARDS

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For More Information Visit
www.kma.co.ke
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• Thank you.