Church's Sh391m real estate venture

In a move to sustain its mission and support initiatives, The Salvation Army, Kenya East Territory, is venturing into real estate.

This innovative step aims to generate new forms of revenue, allowing their ministries to flourish, communities to strengthen, and local culture to thrive.

The church has launched a housing project comprising two apartment buildings with a total of eight units, offering two and three-bedroom apartments, at a cost of Sh391 million.

Scheduled to be completed in 62 weeks, this initiative promises to create dignified housing and meet the needs of both the church and the community.

The Salvation Army's venture comes at a time when cities desperately need housing and creative solutions. This initiative serves as an inspiration for faith-based development across the country, set to create 200 jobs and further benefit the local economy.

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Territorial Commander Colonel Daniel Kiama raised concerns about the challenges churches face, such as dwindling revenues from tithes and offerings, decaying properties, and the impact of the COVID-19 pandemic on collections.

"This instigates fear to take a bold step into the future. It allows the church to think outside of the box. Does the church still exist if there is no building? Absolutely. This opportunity allows more people to be reached,” said Kiama.

The affordable and moderate-income housing units aim to close the racial wealth gap and establish a self-sustaining ecosystem for the church.

“This groundbreaking project shows how creative a faith-based landowner can push the boundaries of housing design to provide a new model of community investment focusing on Environment, Sustainability, and Governance,” he added.

The church plans to use most of the income from this project to support their mission.

Kiama pointed out that many churches have land, buildings, and no debt, but these assets come with upkeep expenses and generate little income.

“We’ve got a lot of capital assets in the form of land that could produce a lot more revenue than it is now. We are overcapitalised.  Business is not a bad word; a business development focus is a vital element of pastoral ministry to support, maintain, and grow the church," Kiama said.