The government is backing Harambee Sacco to construct 1,000 affordable housing units within the next three years.
The Kenya Mortgage Refinancing Company (KMRC) will fund the project to a tune of KSh. 3 billion according to Harambee Sacco CEO George Ochiri.
“We are very hungry for this and members are eagerly waiting to receive the money to put up the houses,” said Ochiri.
“The project complements President Uhuru’s affordable housing plan and that’s why officials in-charge of housing have invited us for discussions,” he added.
He said KMRC agreed to the KSh. 3 billion funding after assessing the sacco. Harambee sacco will use the funds to loan its members.
KMRC has so far mobilized about KSh. 40 billion worth of funds from the government and private sector institutions including international organizations. The company aims to enable banks issue 50,000 mortgages in five years.
Ochiri said the funding from KMRC will allow the sacco to give its members long-term loans payable within 15- 20 years, which is a considerable period of time. The development loans the sacco currently loans out to members are short-term and hence not very suitable for housing projects.
He said Harambee sacco will lend you the money to members at a maximum interest rate of 8 percent or less where the sacco’s normal lending rate is 12 percent.