Broad Borders Cooperative members move to sanction society from acquiring loans against their assets

Stalled Murang'a town apartment project undertaken by Broad Borders Cooperative Society. [Boniface Gikandi, Standard]

Controversy is brewing in a real estate cooperative society after members stormed its Murang’a-based offices demanding the release of their title deeds.

The members who purchased land named the Bahama project under the Broad Borders Cooperative Society moved to protest the delay over the issuance of their title deeds after they completed the payment.

Led by John Ndirangu Nyorotha, Mary Wambui and Ibrahim Ndungo, they gave the management two weeks to process their documents, failure to which they would take legal action.

They stormed the office demanding an explanation after a commercial bank engaged an auctioneering firm to sell the property to recover the Sh14.5 million.

Out of the 43 members, only five had not completed payment for the project located in the Kagio area in Kirinyaga County.

“Kindly note that the members of Bahamas held a meeting on November 2 and resolved that they demand their titles in two weeks, and finalise repaying the Sh14.5 million bank loan,” said Nyorotha.

Wambui said the members are worried about the state of their investment due to the delay in issuance of the titles.

“We have projects in Narumoru in Nyeri County where the members after they were allocated land, were evicted by the land owners,” said Wambui.

The members said the Murang’a town Studio project was a white elephant project after millions of shillings were paid by the members with no development.

Treasurer to the society Francis Matigi and operations manager Mr Munune sympathized with the members, saying they were working towards rectifying the situation.

He could not explain if the bank sought repayment of Sh4.5 million or Sh14.5 million from the project.

Mr Matigi was at pains to explain how the leadership used the project’s title deed to acquire the bank loan without communicating to the members.

“We had planned to convene a meeting for the members as we worked towards stopping the bank from selling off the property,” said Matigi as the members demanded their documents.

The bank, he said, has directed the society chairman Jeremiah Karemeri to clear the loan repayment by December 31.

“In a strategy to stop the auction of the land, some Sh1.5 million was paid and asked to ensure the loans are serviced before the end of the year,” said Matigi.

Karemeri could not be reached for comments through his mobile phone.

 

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