Ongoing court battles between two factions of the New Akamba Unity (NAU) Ltd have scared away potential foreign investors who had shown interest in funding a Sh7 billion housing project at Lukenya in Machakos County.
NAU Secretary General Salome Kinyili said the financier from Canada was willing to fund the project in four phases but the court battles were holding back the plans.
The financier from Canada was to fund it at an interest of 0.4 per cent.”The first phase was to be completed within three years, repayable for between 20 and 25 years,” she said.
She added that investors are willing to fund the entire four phases to be completed between 8 to 12 years, at a cost of Sh28 billion.
Ms Kinyili said the interest charged by the Canadian investors was very low and comfortable, and that the more than 400,000 members of NAU should not lose such an opportunity.
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“Even as we await the ruling on the case in Court, we appeal for Government’s intervention to end the wrangles in NAU, which have intensified since late 2014,” said Kinyili.
The High Court had stopped NAU from using its assets to secure a Sh7 billion loan without the members’ approval. Justice Alfred Mabeya said officials of social organisations operate with the mandate of members and allowed Titus Koceyo’s application against Kinyili, who had attempted to secure the loan from National Bank. The ruling will be made on July 30.
