KCT was founded by the City of Cape Town in 2003 to develop commercial, residential and community facilities in Khayelitsha. These developments help generate economic opportunities and uplift the lives of residents. The Trust, previously a municipal entity, now trades as a non- profit organisation. A Land Availability Agreement (LAA) entered into between the City and KCT, allows KCT to assist with the KBD development and hold equity in associated developments, the returns of which are used in other developments.
Board of Trustees
The Board of Trustees operates in terms of a formal written charter and comprises a balance of leadership with nonexecutive trustees, whom are appointed by the Board through a formal process. The Chief Executive Officer and the Chief Financial Officer are attendees at board meetings. The Trust and its trustees are committed to complying with the principles of openness, integrity and accountability as advocated in the King Report on Governance for South Africa (King IV). The following committees assist the Board in discharging its collective responsibility for corporate governance.
The spatial development parameters of the KCBD are set out in the Spatial Development Framework (SDF). The SDF is a statutory document which, together with the City’s Development Management Scheme and various other policies form part of the regulatory regime for future developments. The SDF also maps out the implementation through detailed Precincts Plans which in term inform the individual Site Development Plans.
In 2017, the Khayelitsha Community Trust’s updated KBD Spatial Development Framework was
approved by the City of Cape Town. The conditions of the approval were as follows:
- A bulk services agreement to be developed and entered into with the City of Cape Town which will set out the sequence of future developments and how they will impact the configurations and calculations of the development contributions.
- A Precinct Infrastructure and Transport Plan needed to be developed which will provide a methodology and recommendations to split the costs of the road infrastructure upgrades that are required over the various land use proposals
- Bulk service agreement has been drafted by KManco and submitted to the City of Cape Town for The draft has gone through various consultation processes within the City’s planning department. KManco awaits approval of the agreement by the City.
- Precinct Infrastructure and Transport Plan has been developed by KManco and approved by the City of Cape Town
- Roads: The City of Cape Town supports the proposed subdivision plans subject to the developer implementing various roads infrastructure upgrades as recommended in the TIA (Traffic Impact Assessment)
Development Costs and Contributions: The water, sewer and stormwater services have been classified as non-deductible. All costs for developing and constructing these services will be for the account of the Developer and will not be considered as part of the Development Contribution.
The increase in revenue in 2019 was due to the efficiency in the rental collection recoveries. The other factor is the renewals of leases on a higher percentage of current rentals. KCT Mall management insisted that their leasing agent negotiate renewals above the15% benchmark.
The decrease in revenue in 2020 was mainly attributed to the start of lockdown and Covid-19 restriction. Many of the Tenants requested rental relief and discounts because their shops were forced to be closed. KCT suffered losses on rental income and promotions revenue that were uncontrollable due to the economic crises that the entire country experienced. We also had Tenants that did not renew their leases due to unfavourable trading circumstances.
In 2021 our Tenants slowly recovered from the impact of Covid-19 lockdown and gradually repaid their rental reliefs granted in 2020. We encouraged our Tenants to pay extra on their rental to cover their arrears.