By Our Reporter
A group of retired teachers in Nyeri County have launched the construction of a Sh143 million housing project.
The group known as Tekimamo (Tetu, Kieni, Mathira, Mukurweini and Othaya) was founded in 1968.
Sampesa Agency Ltd is finding the construction of the commercial rental houses to be built in four-storey blocks.
Upon completion in the next 18 months, the houses built in Skuta area along Nyeri-Karatina road will have 64 units of two bedrooms each.
Tekimamo chairman, Charles Kamuri Gitahi, said Sampesa will recover its money within 25 years.
The group will be retaining 17% of the income while 83 percent will go towards Sampesa’s debt.
“Most people are running away from agricultural projects to housing because real estate is more profitable and marketable,” said Gitahi.
The unsuccessfully tried to get funding from local financial institutions before approaching the property agent.
“The idea was hatched four years ago after our one acre piece of land had been lying idle for more than 30 years. We had approached banks and Housing Finance who asked for our bank statements because they were not convinced by our idea,” said Gitahi.
The group has other commercial properties such as a prime building within the Nyeri CBD that houses the Green Oak Hotel and rental houses in Skuta area.
“The group’s profit is less than Sh200,000 monthly. The lenders told us the profit was too little to guarantee such a multi-million project but Sampesa only wanted proof of ownership of the land and a feasibility study,” stated Gitahi.
The property agent also asked for drawings and approvals of the housing project from government agencies such as the National Environment Management Authority (Nema) and the National Construction Authority (NCA).
Envisaging the 64 units will be fully occupied upon completion, they anticipate an income of Sh11.5 million annually.
Sampesa Managing Director, Simon Murigo said his company did a study on Return on Investment before approving it.
