Stima educates members on Sh4bn housing

 

Stima Sacco CEO Paul Wambua. The sacco recently received a credit of B with a stable outlook. FILE 

By GEORGE NGIGI

In Summary

• The Sacco plans to build 1,500 units with one bedroom apartment to be the cheapest at Sh1.65 million, a two bedroom apartment at Sh2.25 million, a three bed bungalow at Sh4.95 million while three bedroom maisonette is expected to sell at Sh5.95 million

 

Stima Sacco has started educating its members on a Sh4 billion housing project it intends to undertake in Kasarani, Nairobi which will offer them houses at between Sh1.65 million and Sh6 million.

The Sacco plans to build 1,500 units with one bedroom apartment to be the cheapest at Sh1.65 million, a two bedroom apartment at Sh2.25 million, a three bed bungalow at Sh4.95 million while three bedroom maisonette is expected to sell at Sh5.95 million.

The units will be constructed on a 100 acre piece of land bought by the co-operative for Sh440 million.

“These comparatively low costs are as a result of the planned use of alternative technology, speed of construction, optimal use of land due to the existing sewer system and the resultant economies of scale,” read part of a brochure issued by the Sacco to its members.

The members will have to endorse the project during the Sacco’s annual general meeting.

READ: Stima Sacco to build Sh4bn housing estate for members

The co-operative intends to offer long term loans, of between 10-15 years to its members at fixed interest of 12 per cent on a reducing balance.

A member will be required to raise a maximum of 20 per cent of the purchase price of the unit as a deposit with the Sacco financing the remaining amount pegged on the buyer’s total contribution in the co-operative.

Stima Sacco is looking for finances to give it long term funds to help build the project and finance buyers. It recently received a credit rating of B with a stable outlook from South African based rating agency GCR, a pre-requisite when seeking debt funding.

Stima joins other co-operatives such as Safaricom and Chai Saccos that are developing houses for their members.

The Safaricom Sacco has announced plans to raise Sh1 billion to build 300 units on a five-acre piece of land in Mlolongo.

Uptake of mortgage financing has been slow in the country due to high interest rates and lack of access to long term funds by the lenders.