Urithi Housing Cooperative Society members who have defaulted in paying for their houses now risk losing them altogether after the society invited fresh investors to buy them off.
Society Chairman Samuel Maina says the housing giant has also reduced its branches across the Country by almost half due to the hard economic times.
The Society will now operate with 11 branches instead of the previous 21. Maina says a number of factors among them failure by members to honor their monthly payments as well as the prevailing economic cash crunch has forced the Society back to its drawing board where reorganization is key.
The closure of the branches means that the Society has also reduced its workforce considerably due to financial constraints.
Maina says he is convinced that the Society will soon be back on its feet saying, “We are where we are because of a variety of reasons however the fact that a majority of members have defaulted on their payments means we can’t complete the project on time.”
He said the Society doesn’t intend to venture into a new project saying they intend to first complete the ongoing ones and ensure members have their houses as earlier planned.
Maina said, “We have engaged a private company to inject an estimated Ksh 3 billion in exchange of stake in our projects.”
According to the Chairman, Members owe the Society over Ksh 2.5b in default but they are currently seeking to raise Ksh 1.5b by disposing off the houses to new members to enable them complete the projects.
“As a matter of fact once we sell of the houses belonging to members who have defaulted, we will ensure we pay them back their initial investment but after deducting our expenses.” He said.
Maina added that the same will be done in phases saying it’s their intention to restore Urithi Housing Cooperative Society to its glory days.
“We have faced serious financial ramifications due to the defaulting members but am confident that using the current business model we will be able to complete the stalled projects within one year.” Maina said.