Kenya: SACCO seeks Sh2b to fund expansion

Urithi Housing Cooperative Society will borrow Sh2 billion from the local market to finance its expansion plan. This follows shareholders’ approval to have the directors source funding from the local market to finance expansion.

Chairman Samuel Maina recently told shareholders during their Annual General Meeting in Ruiru, Kiambu County that the cash will fund new investments such as schools to be established in Thika, Nakuru and Mombasa towns. Maina disclosed that an independent SACCO - Urithi Premier SACCO has been constituted to act as the source of funds to finance members from the parent company - Urithi Housing Cooperative Society.

The chairman said the new outfit has been approved by the regulator - SACCO Societies Authority.

“Urithi Premier SACCO will be accessible in all areas where the mother company have operations. We realised that people who have acquired land and want to develop were finding it hard to finance their property development because of the high cost associated,” said Maina.

Maina said the SACCO will be diversifying its investments into education sector to boost its bottom-line instead of relying on land holdings and buildings as the sole income. It recently launched Sh1 billion residential constructions in Kilimambogo near Thika town targeting its members.

Investment in the education sector is not saturated and plans are underway to start Urithi Group of Schools. Recently, Urithi Cooperative launched Sh1 billion residential constructions in Kilimambogo on the outskirts of Thika town targeting its members.