Stima Sacco is one of Kenya’s largest deposit-taking SACCOs. The Sacco announced that it plans to build 1500 units at Ksh 4 billion. The project will be situated at Kasarani on the SACCO’s 100-acre piece of land.
Stima Sacco was formed in 1974 and was recently rated by South African-based rating company Global Ratings Company. It was rated B in the short-term and BB+ in the long-term. These ratings are important in helping Stima Sacco secure financing. Currently it is looking for the project’s financier through competitive bidding. GRC rated the SACCO’s outlook as Stable.
What does this mean? The B rate is associated with investments that are speculative in nature, for example real estate. Such investments are affected by factors that fluctuate. Real estate investments are affected by the fluctuating economic cycles and industry conditions.
Stima Sacco plans to provide long-term fixed mortgages to its members upon completion of the project. Booking for the houses will start in August 2014 and the project is slated to be completed 36 months after the financier is appointed and project commences.
By the end of January, the Sacco Societies Regulatory Authority (SASRA) had licensed 135 deposit-taking Saccos in Kenya.
For more information read the Business Daily article.