Harambee Sacco has unveiled two loan products to enable its members who own property to access money through mortgage financing to develop it, and others to directly purchase ready-to-settle homes.

In the two loan facilities; Home Loan and Jenga Loan, the Sacco offers members a repayment grace period of 25 years capped at Sh4 million each.

The Sacco, according to chairman, Macloud Malonza, intends to finance up to 600 units at an estimated cost of Sh2.4 billion in the period 2020-2025.

“Our members have been securing loans, and only buy land which is usually left idle for many years.

However, now, as a Sacco, we have made a decision to help them add value to the pieces of land they have bought,” he said at a Nairobi hotel yesterday.

“Through this mortgage financing programme, we are giving the members an opportunity to add value.

This also refers to those seeking to purchase ready homes,” he added.

Nairobi Metropolitan Services (NMS), director general, Mohamed Badi officiated the launch, and observed that the entry of Harambee Sacco and other expected Sacco societies into the mortgage arena, is set to change the dynamics that have for years driven mortgage industry in Kenya.

“The direct involvement of the Saccos in this sector is definitely set to tilt the scales of mortgage uptake in the country,” he noted, saying that NMS is also expected to benefit from these programmes in its ongoing upgrading of old residential estates in Nairobi.

By Fred Azelwa.