Stima members to get soft home loans from Rafiki Microfinance Bank

NAIROBI: Stima Investment Co-operative Society Limited and Rafiki Microfinance Bank have entered into a Memorandum of Understanding (MoU) that will see members access financing at an affordable rate to acquire property.

Stima Sacco Chairman Sigilai Kirui explained that the MoU was key in the empowerment of the Sacco's members. "We are always looking at partnering with financial institutions that offer favourable terms to our members and assisting them in buying and developing property.

Rafiki is geared towards low-income earners and we have noticed that," he said. ''As a Sacco, we are able to finance our members but we are always looking for partners to offer suitable alternatives," he added.

Rafiki Microfinance Bank CEO Daniel Mavindu lauded the MoU, adding that the untapped low-middle income market offered a good return of investment due to its size. "There is a lot of ground to cover in providing affordable housing to this market segment," he said.

"That is why we need like-minded partners to tap into it. We will finance the members in acquiring plots or the construction of properties at a very friendly rate."

Mavindu said the firm's bid to house every Kenyan and bridge this gap, we have struck strategic partnerships through which we promote home ownership. He said 90 per cent of members of Saccos have only bought land and have not been able to convert them to homes.

"Our partnership with Stima Investment Cooperative Society, which has over 30,000 members, provides an opportunity for its members and non-members to access credit facilities that will promote home acquisition as well as construction, '' he said.

Saccos have been seeking to use their cash to construct houses at low prices for their members to invest in, leveraging on desire to own a home. Ambitions of home ownership have, however, been limited to only a small group due to lack of access of funds.

The co-operative societies have been known to offer better lending rates than banks as they have to get members' approval for the pricing unlike banks which pursue the profit motive.