Rising demand for housing has attracted many saccos into real estate. PHOTO | FILE
What you need to know:
Under “Nyumba Mia” project, Urithi will construct 100 houses as it seeks to boost revenue through residential developments.
The units will be three-bedroomed going for Sh2.8 million.
The houses are expected to be completed by the end of this year and will stand on a 100 acres bought through member’ contributions.
Kiambu-based Urithi Housing Cooperative Society has launched a Sh1 billion project to put up houses in Nakuru, Thika, Juja, and Kitengela.
Under “Nyumba Mia” project, Urithi will construct 100 houses as it seeks to boost revenue through residential developments.
The units will be three-bedroomed going for Sh2.8 million.
The sacco chairman Samuel Maina on Tuesday said the project will be financed through internal cash unlike previous projects funded by local lenders including Unaitas, K-Rep Bank and Equity Bank. It will target both members and non-members.
The houses are expected to be completed by the end of this year and will stand on a 100 acres bought through member’ contributions. Currently, the society has 7,000 members.
“The groundwork has already started in Thika, Kitengela and Juja with Nakuru expected to kick-off in the next two weeks,” Mr Maina said.
“The focus is to increase our investments and plough back the profit to the sacco to help finance other projects instead of relying more on borrowing,” he said.
Sacco members will contribute 50 per cent to the cost with Urithi footing the balance, to be paid through instalments by buyers.
“Investment in the property market has become a key area of focus for investment groups across the country. House rent has skyrocketed and the need for housing has become priority to many households; we are seeking to address the demand by our members,” the sacco chairman said.
Urithi is also diversifying to other sectors like hospitality where it is setting up a Sh450 million hotel in Lanet, near Nakuru town, named Hilltop Resort. Members will have a chance to buy the cottages for letting out.
“We are seeking to tap the opportunities that are available with the coming of devolution,” he said.
Last year, Urithi also launched a Sh1 billion residential project in Kilimambogo in Thika.
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