By James Wakahiu.
Six hours of intensive lobbying by the management board of Kamuthi Housing Society Ltd. saved a Sh3 billion investment from the auctioneer’s hammer.
According to the committee’s report read during their 2016 Annual General Meeting (AGM) held at their Head office’s Maziwa Estate, the society had up to May 8, 2016 to raise Sh4.7 million to clear arrears for two loans of Sh292 million and Sh401 million owed to Sidian Bank (formerly K-Rep) and Co-operative Bank respectively.
Sidian Bank was demanding that the company clears Sh72 million in arrears for the purchase of their 1,233 acre-phase II project (Buffalo Hills Leisure & Golf Village) while Co-operative Bank wanted a monthly installment of Sh6.4 million for the loan they advanced to Kamuthi to purchase their 400 acre-phase III project (Soya Dam Estate).
According to Chairperson Mr. Bernard Maina, the company was facing serious financial and marketing challenges due to the more than a Sh 1billion worth of liabilities. They owed Sidian Bank Sh. 292m, Co-operative Bank 401m and Sh. 441m was indebted to the vender of the Soya Dam Estate land. These outstanding loans and unpaid debts, he added, had made it very difficult for them to move ahead in the processing of individual members’ title deeds as well as securing potential clients to buy the parcels available for sale in their two projects.
Each of the 7,000 members was expected to raise Sh. 80,000 in four months starting February this year as agreed in their previous Special General Meeting (S.G.M.).
The company also resolved to dispose of 108 acres set aside for the Golf Course in Soya Dam Estate to any developer who would develop the same. Convincing the more than 1,500 members who were present took the management until very late in the evening to achieve.