The National Housing Co-operatives Union (Nachu) board has ratified the establishment of a regulated mortgage savings and credit co-operative(sacco) enabling member societies to participate in multi-billion housing projects.
Francis Kamande, the chairman, said the mortgage sacco business model will see Nachu facilitate the country’s 23,000 saccos to get mortgage guarantees from Kenya Mortgage Refinance Company, enabling them to fully participate in the government’s 500,000 homes agenda.
“To enhance our business portfolio management, the board has recommended registration of a mortgage cacco that will focus on co-operative-driven mortgage products. Nachu will, on behalf of saccos, participate in the Kenya Mortgage Refinance Company which is only possible via this business model,” he said.
Nachu will also undergo corporate restructuring with several subsidiaries established to oversee their investments, including Nachu Plaza, Nachu Insurance Agency and Nachu Development Agency.
The housing union’s report to the 29th Annual General Delegates Meeting also reveals that Nachu plans to raise funds via a Real Estate Investment Trust (Reit) this year to actualise its mass housing dream.
The union has parcels of land across the country while member saccos also have land earmarked for member housing.