A group of hawkers from Thika have defied harassment from county askaris, competition from other traders to set up a housing project.
With a total loan amount of Sh9.8 million the group has set up 18 bedsitter units on a proposed four-story building in Kiganjo Estate.
Currently, the hawkers are putting up six one-bedroom units and eight bedsitter units on the first floor.
Thika MP Patrick Wainaina who toured the hawkers’ project pledged to assist them to raise Sh1 million to complete the ground floor so that they can start earning from rent.
“Through the Jungle Foundation, we are ready to guarantee you a loan of up to Sh1 million even if you need it tomorrow,” the MP said.
The hawkers bean their journey by registering a self-help group in 2010 and saving money monthly while exploring investment opportunities.
They started by saving Sh500 each monthly but have since increased the contribution to Sh1600 today.
According to Chairman Joseph Muiruri then they were 53 at the beginning but ten of them have since left.
“We had a vision and to actualise it, we decided to be contributing savings,” Muiruri told the star on Tuesday.
Muururi said that their group had strict rules including hefty fines for failing to make timely deposits.
“We thought of purchasing matatus, tuk tuks and motorbikes but then found that the transport sector is too troublesome and could divide us,” he said.
The chairman said that they used their savings to purchase a plot at Kangangu area in Maragua constituency, Murang’a county.
After deciding to invest in the housing sector, the group purchased another plot measuring 50 by 100 metres in Kiganjo Estate in Thika at Sh1 million.
They approached Unaitas Sacco Society Limited, who gave them an initial loan ofSh3.6 million to start construction.
“We explained what we wanted to do and they asked us for structural plans and we gave them. They agreed to fund us,” Muiruri said.
The group's grand plans hit a snag.
“We got the money but little did we know that our plot had white clay. We exhausted the money even before we could raise the foundation,” he said.
They sold the plot at Kangangu and used the money to raise the foundation.
The group went to the Sacco to seek more funding but were advised to register a company so that they could secure more funds.
That’s when they registered Thika Town Vendors Company.
“The Sacco told us that it couldn’t give more than Sh3.8 million to a self-help group so we registered a company and we were able to secure a Sh6 million loan,” he said.
Muiruri said that already they have spent the money on the ground floor which has 18 bedsitter units and is almost complete.
Currently, the hawkers are putting up six one-bedroom units and eight bedsitter units on the first floor.
“The current market rate for a bedsitter in this area is Sh5,000 and therefore we hope to be raising Sh90,000 per month from the ground floor,” he said.
The group’s treasurer George Karanja said that they are hoping to construct a four or more storey flat.
Karanja also said that since they registered their company as a real estate company, they plan to use their building as collateral to secure another loan.
They will use the cash to purchase a land which they can later sub-divide and sell as plots.
“We believe that we are on the right track and soon we will realise our dreams of investing in real estate. Those looking down on us because we are hawkers will be in for a surprise,” he said.
Wainaina challenged the government to start a loans programme to facilitate groups like the Thika Town Vendors who are contributing towards the realisation of the government’s Big Four Agenda.
He said that the government should extend loans of up to Sh10 million to such groups, payable in 10 years and at an interest of as low as three per cent per annum.
(edited by O. Owino)
