Markets & Finance

Urithi Housing to build Sh800m shopping mall in Kikopey

kikopey

Kikopey is a popular stopover for lovers of roast meat. Kiambu-based Urithi Housing Co-operative Society plans to set up a shopping mall at the Gilgil-Kikopey area. FILE PHOTO | NATION

Kiambu-based Urithi Housing Co-operative Society plans to set up a shopping mall at the Gilgil-Kikopey area.

Urithi said it will invest Sh800 million in the project funded through member contributions and borrowings. The construction at the popular roast-meat stopover on the Nairobi-Nakuru highway is expected to kick off in October.

In an interview, the chairman Samuel Maina said the investment will stand on seven acres recently acquired at a cost of Sh35 million.

“The venture will partially be funded through corporate membership where the shareholders will contribute Sh400 million while the remaining amount will be offered by National Bank.

“The property will be named La’Heriter Highway Mall and will be available for supermarkets, eateries and even petrol stations,” said Mr Maina.

Members seeking to rent part of the premises will be given priority.

Mr Maina said the new investment is part of an effort to diversify the sacco’s portfolio from land holdings to buildings.

The sacco, which is headquartered in Thika with outlets in Nairobi, Nakuru, Gilgil, Mombasa and Kitengela, is also seeking to raise its membership from the current 6,000 members.

“We are currently recruiting new members with the target of reaching 10,000 by October this year and this will play an important role in scaling up our investment,” the chairman said.

He added that the strategy is to increase the sacco’s footprint in counties where it does not have operations and to mobilise resources for future capital outlay in order to avoid overreliance on commercial banks.

Housing units

The sacco has largely relied on local lenders to implement projects, with the latest being the Sh1 billion residential construction in Kilimambogo on the outskirts of Thika town that is targeting 6,000 members.

READ: Sacco launches Sh1bn real estate scheme in Thika

The Kilimambogo venture, which will comprise 600 housing units, is partly funded through the society’s cash reserves but includes borrowing from financial services firm Unaitas, K-Rep Bank and Equity Bank.

The initiative comes at a time when saccos are increasingly targeting society members with land and housing schemes.

Urithi joins accountants’ firm Mhasibu Properties that is putting up a multi-storey commercial building in Kilimani, Nairobi. The project is estimated to cost at least Sh500 million.

READ: Mhasibu sacco set to put up Sh500m complex in Nairobi

Shelter Afrique is also targeting housing saccos across the country to grow its share of the mortgage market. The company is eyeing co-operatives that have acquired land for their members who cannot afford to develop their land.