By Obegi Malack
obegimalack@gmail.com
The Permanent Secretary for State Department of Cooperative Ali Noor Ismail has commended cooperatives for their contribution in the government agenda of affordable housing.
The PS who was speaking during Ukulima DT Sacco’s 50th anniversary in a Nairobi Hotel said the Saccos provides 80% of housing needs in the country as per a report recently released by World Bank.
The cooperatives make owning a house cheaper for middle and the low income class in the society. The report revealed that several cooperatives have invested in the housing sector.
The Saccos have been success in supporting the government through its big five agenda which comprises of Food Security, Affordable Housing, Manufacturing and Affordable Healthcare.
Cooperatives play a key role in development of the country; they contribute 32% of the national savings.
Ukulima Sacco recently partnered with Kenya Mortgage Refinance Company (KMRC), a government backed company through the National Treasury in partnership with World Bank and other stakeholders to support the Affordable Housing Pillar of the Government of Kenya’s Big Four Agenda.
The Sacco is among seven saccos who are shareholders of the KMRC.
KMRC was incorporated on the 19th April 2018 as non-deposit taking financial institution under the supervision of the Central Bank of Kenya with the single purpose of providing long-term funding to primary mortgage lenders (Banks, Micro Finance Institutions and Saccos ) in order to increase the availability and affordability of mortgage loans to Kenyans.
The entry of KMRC into the market is expected to improve mortgage affordability, increase the number of qualifying borrowers hence the expansion of the primary mortgage market and home ownership in Kenya.
According to the Sacco Society Regulatory Authority’s (SASRA) Supervisory Report of 2020, the co-operative movement has invested immensely in the property market to a tune of Sh9.89 billion.
