Property developers call for reinstatement of interest capping

Real estate and property dealers have expressed concern over the recent court ruling that declared the Interest capping as unconstitutional.

Urithi housing cooperative society chairman Samuel Maina says the move is most likely to affect and slow down the uptake of property in the market since most investors will find it to be expensive and unattainable.

“In order to help most ordinary Kenyans to achieve their dream of owning homes the Interest rate capping suspension should be lifted, otherwise to many it will be just but a dream,” said Maina.

“The move is likely to assert more pressure on Sacco’s that will be the alternative avenue to source for financial facilities for development.”

The Kenyan mortgage industry has only done close to 50,000 units alone and it is not sufficient to attain the dream of availing affordable housing to the population.

Low-cost housing

The government through its Big Four agenda has listed Affordable housing as one of the four components of the pillars and has a projection of constructing low cost housing 500,000 units annually.

‘’I will not tire to emphasis that the government’s goal to provide affordable housing can only be achieved and or complimented by Cooperatives that already have structures and members.

“It will also be supported by providing necessary incentives and putting right policies in place.”

Maina, who was addressing potential investors at  Birmingham woodland project open day in Mang’u Thika, urged investors to understand the socio-economic model being employed by the Cooperative in provision of Houses and land.

“We pool resources from members and for any project to take off to completion solely depend at the speed at which members contribute.

“Once this is understood there will be less anxiety and misconception by Investors.”

Urithi’s  Birmingham Woodlands is a 200-acre project in Kiambu County and is the Cooperative’s latest available project.

At least 100 acres are available to investors in the first phase for between KSh2.25 million, while the balance of land will be used for construction of support infrastructure and amenities.


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