Stima Sacco Launches Mortgage Facility To Boost Affordable Housing Agenda
By Ker Mogallo
In a bid to catapult the government of Kenya’s Big Four Agenda, Stima Sacco Society a leader in the industry has partnered with the Kenya Mortgage Refinance Company (KMRC) to offer low-cost home purchase loans.
The facility will offer mortgages at 9percent per annum on reducing balance to its members, most of who are drawn from the energy sector. Members of Stima Sacco who are not employed but are in business or with rental incomes will get the loans at 9.5 percent, making the Sacco’s offering one of the lowest priced after similar loans offered to civil servants in the country.
‘With the launch of this loan, members of Stima DT Sacco will be able to either purchase or construct a residential house.
As a Sacco, tapping into new markets and diversifying into new products that are relevant to our members and contribute to their welfare is our key focus as we look into a prosperous future together,’ noted Stima Sacco C.E.O Dr. Gamaliel Hassan in an interview with the Corporate Watch at the launch ceremony.
The low-cost mortgage scheme launched by Stima Sacco is aided by funds from the Kenya Mortgage Refinance Company (KMRC) to help cushion an annual housing demand of 250,000 units against an estimated supply of 50,000 units, culminating in a housing deficit of two million units, or an 80 percent deficit.
“The launch of this scheme reflects Stima Sacco’s firm commitment towards aiding the government in achieving its Big Four Agenda initiatives and its deep expertise in financial market origination and distribution, embedded in a mature legal and regulatory framework.” Said the Stima Sacco Chief Executive Officer.
Principal Secretary (PS) State Department of Housing and Urban Development Charles Hinga praised the efforts Stima Sacco had made to transform the housing landscape in Kenya and make homeownership a reality for more families. He noted that the Government’s approach in providing affordable housing is by embracing partnerships with stakeholders in the housing value chain since neither the Government nor the private stakeholders can do it alone.
“We all have to work together. It is for this reason that the Government is committed to partner with various stakeholders and developers to build affordable houses for Wananchi. This is ongoing in various sites in the major towns of Nairobi, Mombasa, Kisumu, Nakuru, and Eldoret.” Added the PS.
Speaking at the event, Stima Sacco National Chair, Mrs. Rebecca Miano, acknowledged the immense contribution Stima Sacco has played to its members’ welfare and economic interests by offering them affordable credit, a robust saving platform, and putting in place initiatives aimed at uplifting their social-economic wellbeing.
“The Society has stuck true to its maxim of “empowering members for life” by walking with our members throughout their financial journey.” She noted.
Driven by an enormous interest in real estate by members of the Sacco as well as the general public, Stima Sacco DT found it crucial to introduce a beneficial mortgage scheme to all its members. Now, households in need of affordable housing can apply for mortgage loans to buy homes at reasonable interest rates.
Established in 1974 with the sole aim of uplifting the members’ social-economic wellbeing. Stima DT Sacco currently has nine branches; Nairobi (Parklands), Mombasa, Kisumu, Nakuru, Olkaria, Eldoret, Nairobi CBD, Embu, and Kawi Centre (South C).