Kenya Mortgage Refinancing Company (KMRC) to offer Harambee Sacco Sh3 billion from the for onward lending to members to enable them put up new homes
According to the Board Chairman Macloud Malonza, the Sacco will start disbursing the loans as early as February next year.
Malonza, “The regulations are out and in February, members will start getting the money. The interest rates will be less than 10 per cent.”
The Chairman was speaking in Nakuru when touring some of the Sacco projects where he said that Harambee Sacco gives out up to Sh16 billion in loans a year, and is optimistic that the additional funds will assist members put up about 3,500 housing units.
He says the move is expected to provide a major boost to the State’s affordable housing project that targets to put up half a million houses by 2022.
The Sacco has over 80,000 members in 174 branches across the country. It draws its membership mainly from the Kenya Defence Forces, the National Police Service, the National Youth Service, the national and County governments, Parastatals, government departments and constitutional bodies.
George Ochiri, the Sacco’s chief executive officer emphasized that the Sh3 billion will be strictly disbursed to fund construction of housing units for domestic purposes.
Households earning less than Sh150,000 per month had for many years been locked out of the mortgage market due to high housing prices on offer and short repayment period for loans.
KMRC has so far mobilised about Sh40 billion.