Mhasibu offers Sh40m loans payment relief

The Covid-19 pandemic forced Mhasibu housing company to reschedule repayments on loans worth Sh40 million in the first nine months of 2020, the firm says. FILE PHOTO | NMG

By JAMES KARIUKI
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Summary

• The Covid-19 pandemic forced Mhasibu housing company to reschedule repayments on loans worth Sh40 million in the first nine months of 2020, the firm says.
• Mhasibu chief executive Morris Njagi said members hard-pressed economically had enjoyed rescheduling of loan repayments for properties by periods of between six months to one year.

The Covid-19 pandemic forced Mhasibu housing company to reschedule repayments on loans worth Sh40 million in the first nine months of 2020, the firm says.

Mhasibu chief executive Morris Njagi said members hard-pressed economically had enjoyed rescheduling of loan repayments for properties by periods of between six months to one year.

"Like other businesses, we listened to our members and discussed ways of accommodating members facing hardships due to Covid-19 protocols that saw businesses closed," he said.

The company, a fully owned subsidiary of the 20,000-member strong Mhasibu Sacco that owns land in Nanyuki, Kisumu, Nakuru, Nyeri, Machakos and Kiambu for residential developments has since frozen land acquisition plans to mitigate Covid-19 challenges that were blamed for disruption of businesses leading to reduced sales.

The real estate sector is one of the worst hit by the pandemic, which has caused thousands of job losses and reduced income, thus affecting people’s ability to invest in long term held assets such as land.

Rental yields have also stagnated due to the lower spending power in the economy, hurting returns and slowing down new developments.