Harambee Sacco Bets On AfDB Real Estate Deal To Reach Sh1bn Assets
Tuesday, July 13, 2021
By LYNET IGADWAH
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- The Harambee Investment Cooperative Society (HICS) is in talks with the African Development Bank (AfDB) to enter the real estate sector.
- The investment vehicle of the giant Harambee Sacco seeks to enter the real estate business beyond the acquisition and sale of land.
Harambee Investment Cooperative Society (HICS) is in talks with the African Development Bank (AfDB) to enter the real estate sector as it seeks to increase its asset base to over 1 billion shillings by the end of the year.
The investment vehicle of the giant Harambee Sacco seeks to enter the real estate business beyond the acquisition and sale of land, which it has been doing since its inception in 2014.
The society that largely serves the disciplined forces has acquired and sold more than 200 acres in three years, bringing its total asset base as of December 2020 to 616 million shillings.
“We are negotiating a partnership with the African Development Bank (AfDB) to ensure that we offer affordable housing to members in an effort to achieve the asset base of more than 1 billion shillings by the end of the year,” said HICS President , Macloud Malonza, at the sixth annual general meeting of the society.
He said the plan is to give the 596 members of the society the opportunity to put the land they buy into use.
HICS has paid its shareholders 8 million shillings, of which 15 percent is divided into dividends and 10 percent interest on deposits for the year to December 2020.
“This is the first time in three years (since 2017) that we are giving dividends and interest on deposits to our members,” he said. The partnership’s first project was 10 acres in Kantafu along Kangundo Road, Nairobi, in 2019, followed by the acquisition of 40 acres in Nakuru, another 20 acres in Kantafu, and 145.5 acres in Eldoret.
At the end of 2020, a total of 370 property titles had been issued, making HICS one of the fastest investment cooperatives in the country. HICS Acting Executive Director Gichuki Kabukuru noted that there had been a slow sale on the Eldoret project due to Covid-19 movement restrictions.
“People normally want to see something tangible and Covid restrictions prevented us from taking members to the ground to view beacons,” he said.
Covid restrictions and property registration delays meant it took more than four months for deeds to be adjudicated after purchase.