Savings and Credit Cooperative Societies should embrace the government’s affordable housing agenda if they are to stabilize their society’s fiscal health and help bridge the country’s housing deficit.
Cooperatives Development Principal Secretary Ali Noor said the state department of cooperatives is in talks with the Kenya Mortgage Refinance Company (KMRC) to have more SACCOS looking into building affordable housing register with the corporation in order to accelerate the housing program.
In the government’s first phase of the Affordable Housing Programme (AHP), 228 units came online in Nairobi.
The next 400 units are expected to be ready in June 2020 and the final phase by the end of the year. The government aims to build 500,000 units by 2022.
To this end, SACCOS have been urged to use their massive resources to invest into the ambitious programme.
Speaking during DT Stima SACCO’s 46th Annual General Meeting, Cooperatives Development Principal Secretary Ali Noor said that there have been requests by various SACCOS willing to take up the AHP challenge but lack capacity.
At the same time, Noor added that talks were at an advanced stage to implement the much awaited Central Liquidation Fund to safeguard against expensive SACCO to Bank borrowing.
This come at a time when Several SACCOS grapple with serious management and remittance issues.
Despite economic headwinds however, DT Stima SACCOs Balance sheet now stands at 36.5 billion shillings up from 32.3 billion shillings in 2018 making the SACCO the second ranked tier 1 SACCO in the country behind Mwalimu SACCO.
The SACCOs board recommended a dividend payout of 14 percent per share and a payment of interest rebates of 10.5 percent on member deposits.