The cash-strapped Urithi, a housing co-operative struggling to overcome debt woes and fraud claims if facing collapse despite efforts to redeem the tainted reputation.
Today, we’ve established that Family Bank is yet to lift auction notice or issue a partial discharge on the Urithi Sacco’s 104 acres property in Murang’a County to recover Sh500million loan owed to the lender by the troubled firm.
Effectively, this spells doom for the housing company that swindled hundreds of unsuspecting Kenyans who hoped to be homeowners but have nothing to show for the money they contributed some sourced as bank loans to buy retirement homes.
Contrary to reports by a local daily, Family Bank is still holding on to the High Court ruling issued last year by Justice Grace Kemei.
Justice Kimei dismissed the case filed by 36 sacco members that sought to bar the lender from auctioning the land after finding that the loan had been disclosed to investors.
The judge found that sale agreements signed by the members indicated that the property is charged to the bank, hence investors cannot claim to be in the dark about the debt.
When reached for comment, Urithi Sacco Chairman Samuel Maina did not respond to phone calls and inquiries sent as short text messages to him.
“We have nothing to show to our members, some keep calling and visiting the offices. We even dropped sales agents we had hired. Some of them are still owed money here.” A source from within the debt laden firm disclosed.
Over 32,000 members of the co-operative are counting their losses and have since recorded statements at the Directorate of Criminal Investigations (DCI) complaining of criminal fraud by sacco officials.
The losses run into billions of shillings considering that some members have lost their lifetime investment they hoped to own for close to one decade now.
“Many had taken bank loans to finance their purchases and are dealing with double losses, given that they have nothing to show for the money.
Hell broke loose in 2019 when it dawned on members who had fully paid up for their houses to be constructed at Joska-Kamulu in a project christened Osteen Terrace Gardens they had paid for an imaginary project.
“The plan was to build houses in a record 24 months and hand them over to clients by the end of 2018. Unfortunately, this never happened as houses are halfway done and no work is going on. Many of the members who paid 100 per cent are now crying as no word is coming from Urithi Sacco management.” One client lamented.
The disgruntled members are now seeking to petition the Director of Criminal Investigations (DCI) George Kinoti to intervene aand have the investigation files finalised and have those culpable charged.
Ironically, when Urithi Housing and Co-operative Societies entered the market with an affordable plan that suited the common mwananchi, many Kenyans saw it as an opportunity to have an affordable plan to help their own houses.
However, those who invested their money have nothing to show for it.
In 2016, Urithi Sacco settled for a housing unit in Joska.
The team christened the development Osten Terrace Gardens. The project was commissioned in June 2016. The plan was inclusive to the majority of the middle class.
The cost was 1.6 million to 3.25 million. The money was to cater for a two-bedroom apartment in the 10-acre piece of land.
Years down the line, the project is yet to be completed.
Maina, the chairman of Urithi back in 2016, acknowledged that his organization was facing challenges.
Afterwards he claimed delayed house approvals process and the high cost of building materials was to blame for the financial crisis the firm was experiencing to hoodwink the members.
A few days ago, the Sacco, which rebranded to Urithi Housing Cooperative, indicated that it had agreed on an out-of-court settlement with Family bank over 104 acres of land but has since been confirmed as misleading.
Some unfinished projects include Panorama Gardens, Olive Tola Project, Nakuru Kiambogo Bungalows, and Birmingham Woodlands City.
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