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Sacco halts housing projects as member contributions fall

Houses under construction
Houses under construction. FILE PHOTO | NMG 

The National Cooperative Housing Union (Nachu) has suspended housing projects it was implementing for its members citing reduced contributions and repayments hinting at imminent loan defaults due to the Covid-19 pandemic.

Nachu chairman Francis Kamande said many beneficiaries of its 400 housing units had reported suffering reducing incomes where some lost jobs and requested partial release of their savings to meet daily expenses.

“The impact of the pandemic in the housing sector has seen us put brakes to numerous housing projects being funded by us for individual members and those fronted by housing co-operatives,” he said.

To date, Nachu has constructed 2,000 low-cost housing units for members of their affiliate housing saccos with four projects totalling 490 housing units now underway in Nakuru, Kakamega, Laikipia and Nairobi while a further 400 units were earmarked for ground-breaking in Kisumu, Machakos and in the Coast region.

At the same time, Mr Kamande said they had rescheduled about Sh500 million loans owed to it by housing co-operative societies, boda boda riders, small-time traders in fresh produce and hotels in the past quarter.