DEVELOPMENT

Sheria Sacco set to launch Sh2 billion twin tower project

Says ground breaking will be before next year.

In Summary

•The project costs are estimated at about Sh2 billion.

•The building will compromise commercial residentials, shopping centres, and offices because we are sitting on a prime property of about one acre where our offices are located," Kiage said

An aerial view of Upper Hill, a prime area in Nairobi/FILE
An aerial view of Upper Hill, a prime area in Nairobi/FILE

Construction of Sheria Sacco's twin towers will start before next year, chairman Justice Patrick Kiage has said.

The project costs are estimated at about Sh2 billion.

"The building will comprise commercial residentials, shopping centres, and offices because we are sitting on a prime property of about one acre where our offices are located," Kiage said.

He was speaking during Sheria Sacco Society limited members engagement forum in Nairobi, on Saturday.

The meeting was aimed at getting relevant approvals from the Sacco Regulatory Authority.

He said the project will ensure the prime parcel of land is converted into an income-generating asset that is beneficial to members. 

Kiage said the plan is timely considering the Sacco has grown over the last 50 years, with its membership currently at 15,000.

Its total asset base is over 7 billion assets.

Kiage noted that the development plan coincides with the Sacco's 50th anniversary slated for next year.

"There is also need to modernise the Sacco's offices which comes under this project," Kiage said.

Sheria was this year among the best paying this year in terms of dividends rewarding its members with  8.5 per cent interest on deposits.

This saw it pay Sh363.5 million up from Sh332 million and a 16 per cent on their stake rising their payout to Sh59.5 million up from Sh54.7 million.

According to Kiage, investment in a robust digital platform has helped the cooperatives navigate through challenging times, especially with digital disruption.

Despite the pandemic, member deposits grew 11.4 per cent to Sh4.8 billion from Sh4.3 billion in 2019, with its loan book expanding to Sh5.7 billion from Sh5.4billion in 2019.