Mhasibu Housing, a fully owned subsidiary of Mhasibu Sacco Society has been in existence for 6 years now. 13 years ago, members of Mhasibu Sacco, mainly accountants, started agitating for higher returns. However, the limitation was in the source of funds Saccos hold.
Primarily, Sacco’s have their money from savings and credits of members. Members suggested a limited company to handle their investment venture would be the best route to follow and with that resolution, Mhasibu Investment Company was formed.
“Mhasibu Sacco members were taking loans and mostly investing in land. However, some of them invested in bad deals which left them repaying loans that did not help them in any way. They were either conned by people who masqueraded as land dealers or the land they bought was unsuitable for development,” says Isaac Kiragu, the National Chairman, Mhasibu Housing Company Limited.
Mhasibu Housing undertook their first project six years ago purchasing a 70-acre piece of land near Runda paradise. Members took advantage of their numbers by pulling together resources thereby enjoying economies of scale. The land was subdivided into quarter pieces of land and sold for Sh1.75M.
“That was great value for our members. Owning plots near the cabinet secretaries and the influential people in the community for such a price was a bargain,” asserts Kiragu.
“In economics, they call it economies of scale, in management, they call it synergy but if you go to church, whatever we did was nothing short of a miracle. Ever since then, Mhasibu housing has been performing miracles: Turning ‘thousandeers’ to millionaires and millionaires to billionaires.”
Some of the ongoing projects of Mhasibu housing include Ruiru land, being sold for Sh3M for Mhasibu housing members. Near Isiolo resort city, along Nanyuki road, Mhasibu housing is selling an eighth of an acre for Shs250,000 for members while Kisumu project at Riat hills along Kisumu Kakamega road is going for Kshs 750,000 for members.
He notes that the challenge of owning a home for new employees can be overcome by joining a savings and credit society. Unlike commercial banks, Sacco’s offer relatively low interest rates loans with stability. This can be attributed to their source of capital from their members.
Mr Kiragu prides himself in leading the housing society since its inception 6 years ago. Within this period, the Sacco has sold credible land to their members. Therefore, repeat purchase has been high.