Members of Urithi Housing Cooperative Society who have failed to pay for their houses now risk losing them completely after the society bid fresh investors to purchase them off.
The Cooperative is seeking to raise Sh 1.5b by disposing off the houses of members who have defaulted payments to new members to enable them complete the projects.
According to the society chairman Samuel Maina, the society members owe it in excess of Sh 2.5b in default.
He said that the society had engaged a private company to inject an estimated Ksh 3 billion in exchange of stake in their projects.
While maintaining that the society’s intention was to restore it to its former glory within a year, the chairman insisted that the sale of the houses will be done in phases.
“No member will lose their initial investment but that will be paid to them after deducting our expenses. We intend to sell defaulters’ houses soonest,” he stated.
In a fresh bid to minimize high operational costs precipitated by harsh economic times, the housing giant has also reduced its branches across the country by almost half.
The chairman said the society will now operate with 11 branches instead of the previous 21 which will result to a considerable reduction of workforce.
Maina said a number of factors among them failure by members to honor their monthly payments as well as the predominant economic cash crunch has forced the Society back to its drawing board where restructuring is key.
However, the chairman said he is persuaded that the Society will soon be back on its feet.
“We are where we are because of a certain reasons. Defaults accrued from members have brought about these challenges incapacitating our desire to complete projects,” he said.
Maina revealed that the institution will not venture into any new project until the ongoing ones are successfully complete to ensure members have their houses done in time as agreed.