Retired Nyeri teachers launch Sh143m real estate project
A group of retired teachers in Nyeri county have launched construction of a Sh143 million housing project.
The group known as Tekimamo, short form for Tetu, Kieni, Mathira, Mukurweini and Othaya, was founded in 1968.
Sampesa Agency Ltd is funding the construction of the commercial rental houses to be built in four-storey blocks.
Upon completion, set for the next 18 months, the houses built in Skuta area along Nyeri-Karatina road, will have 64 units of two bedrooms each.
Tekimamo chairman, Charles Kamuri Gitahi, said Sampesa will recover its money within 25 years.
The group will be retaining 17 per cent of the income while 83 per cent will go towards Sampesa’s debt.
“Most people are running away from agricultural projects to housing because real estate is more profitable and marketable,” said Gitahi.
Before approaching the property agent, Gitahi explains the group hit dead ends with local financial lenders and the Housing Finance Corporation.
“The idea of the housing project was hatched four years ago after their one-acre piece of land had been lying idle for more than 30 years. We had approached banks and Housing Finance who asked for our bank statements because they were not convinced by our idea,” said Gitahi.
The group has other commercial properties such as a prime building within Nyeri CBD that houses the Green Oak Hotel and rental houses in Skuta area.
“The group’s profits are less than Sh200,000 monthly. The lenders told us the profit was too little to guarantee such a multi-million project. Sampesa only wanted proof of ownership of the land and a feasibility study,” stated Gitahi.
The property agent also asked for drawings and approvals of the housing project from government agencies such as the National Environment Management Authority (Nema) and the National Construction Authourity (NCA).
Envisaging the 64 units will be fully occupied upon completion, they anticipate an income of Sh11.5 million annually.
Sampesa managing director, Simon Murigo Waigwa said his company did a study on Return on Investment before approving it.