Teachers’ Sacco rolls out housing project

June 17th 2013, By Augustine OduorNairobi, Kenya: Teachers are set to benefit from a multi-billion housing project that will see each of them own a house of up to Sh4.5 million.

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The Mwalimu National Savings and Credit Society announced that it is working on an elaborate housing scheme for all its 53,000 members.

In addition to this, the Sacco has acquired a piece of land in Nairobi’s Upper Hill area to construct a Sh1.5 billion complex to host its headquarters.

This means that the current teachers Sacco offices situated along Tom Mboya street will be relocated to the new 15-storey building to be completed in two years.
The Chief Executive Officer of the Sacco, Joshua Ojall, said these are some of the major projects lined up to make teachers comfortable.
He said all member teachers will soon be able to choose one to three bedroom houses in the first phase of the project to be piloted in Nairobi. Ojall said Juja and Kitengela areas in Nairobi have been identified for the pilot project.
“The nearer the house is to the city the more costly it will be because land is more expensive as you move closer to Nairobi. But the houses to be constructed in an eighth of an acre plots will range from Sh2.8 million to Sh4.5 million,” he said.
Nationwide strike
Teachers through their unions are still pushing for a 50 per cent of their basic pay as housing allowance from the Government.
This is one of the issues in the 1997 Legal Notice that Kenya National Union of Teachers (Knut) has registered as a concern in the coming nationwide strike.
Ojall however said teachers will have an opportunity to chose the design of their house. “They will tell us their taste so that the homes are customised as per their wish,” he said, adding the project will be rolled out to other counties immediately the Nairobi project is complete.
Ojall, who was addressing the over 6,000 secondary school heads in Mombasa, said depending on their capability they will own the houses through a mortgage system.
“We have already identified land for the pilot projects and we have our valuers on the ground. We hope to spend Sh250 million to acquire the land subject to adjustment,” he said.

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“We came up with this idea because given with the current pay of teachers it takes them up to ten years to take and service loans just to own a home,” said Teressa Mutegi, the vice chairperson of the Sacco.

Ms Mutegi said the Sacco currently receives over Sh1 billion per month from its members.
Last year alone, she said, members received dividends of Sh1.5 billion at a 10.5 per cent rate up from 9.5 per cent in 2011.
“If all members can get their salaries from the Sacco, get loans here, bank cheques and also deposit then we can give dividends of 11 per cent at end of the year,” she said.
She added; “If that happens then we shall earn Sh60 million per month on salaries alone.”