Falling property prices have forced the giant Harambee Sacco to defer sale of some of its Sh1.7 billion land and developed properties.
Chief executive George Onchiri said the sale scheduled for this year had been deferred until when the property market will regain its robustness.
“A year ago, we resolved to unlock funds held in idle land and developed properties but the current situation presents an ugly scenario where any property sale would fetch minimal returns,” he said.
Speaking in Nairobi, Dr Onchiri said they had instead resolved to redevelop their 12-acre Kisumu plot, Siaya (10 acres) and Nanyuki’s five acres into residential units under the affordable housing scheme for sale to members, mostly drawn from the civil service and the disciplined forces.
The CEO said they will raise funds for the planned affordable housing projects via sale of prime properties in Westlands and developed units on Limuru road.
“We want a sacco that benefits its members first via provision of mortgage schemes that enable them to acquire land and housing units in their areas of preference,” he said.
Other properties they own include Harambee Sacco Plaza in Nairobi, developed units in Mombasa and Kisumu.