By John Majau
Jamii Bora Bank and Capital Sacco have partnered in a bid to provide affordable housing for its members.
The two financial institutions signed a Memorandum of Understanding in Meru town recently.
During the initial stages the two institutions will target 10,000 members of the Sacco with the feasibility study focusing on the initial group of 2,000 beneficiaries.
In the agreement, Jamii Bora Bank will finance, design and develop the housing units for Capital Sacco members while the Sacco will manage repayment of loans once the project is complete.
Speaking after signing the MOU, Jamii Bora Bank housing development programme manager Elizabeth Omolo said Capital Sacco was the first institution to partner with the bank in the initiative.
“We bank many Saccos and realised that most of them have acquired land and subdivided it to members. However, the Sacco members lack the capacity to develop the land. The agreement is to have Saccos providing the land and beneficiaries of the housing project,” said Omolo.
She said they were targeting 10,000 members of the Sacco but a feasibility study will focus on the initial group of 2,000 beneficiaries.
Capital Sacco Chief Executive Officer, Eliezer Kaburu said they expect the feasibility study to be complete in three months.
He said the Sacco was keen to develop a product that complies with regulations guiding savings and credit co-operatives.
“We are glad that this partnership is geared towards implementing one of the Government’s Big Four Agenda. We hope to commence construction of the houses within this year,” said Kaburu.
Capital Sacco has 15 branches with 14 in Meru and one in Nairobi.