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11th Hour Intervention Saves Kamuthi Housing From Losing 3b Investments.

Six hours of intensive lobbying and persuasion by the management board of Kamuthi Housing Society Ltd. Saturday evening salvaged a sh.3 Billion investment from the auctioneer’s hammer.

According to the committee’s report read during their 2016 Annual General Meeting (A.G.M.) held at their Head office’s Maziwa Estate, the society had up to Sunday 8th May 2016 to raise sh. 4.7million meant to clear bank loan arrears for the two loans of sh. 292 million and sh. 401 million, owed to Sidian Bank (Formerly K-Rep) and Co-operative Bank respectively.

Sidian Bank was demanding the company to clear sh. 72 million in arrears for the purchase of their 1,233 Acre-Phase II Project (Buffalo Hills Leisure & Golf Village) while Co-operative Bank wanted a monthly instalment of sh. 6.4million for the loan they advanced to Kamuthi in order for them to buy their 400 Acre-Phase III Project (Soya Dam Estate).

According to their chairperson Mr. Bernard Maina, the company was facing serious financial and marketing challenges due to the more than a billion shillings worth of liabilities. Other than the bank loans, they were also indebted with sh. 441m to pay the vender of the Soya Dam Estate land. These outstanding loans and unpaid debts, he added, had made it very difficult for them to move ahead in the processing of individual members’ title deeds as well as securing potential clients to buy the parcels available for sale in their two projects.

To save their image as a leading co-operative society in the real estate industry, each of the 7,000 members was expected to raise sh. 80,000 within 4 months starting February this year as agreed in their previous Special General Meeting (S.G.M.).

The company also resolved to dispose of 108 Acres set aside for the Golf Course in Soya Dam Estate to any developer who will develop the same. The chairman also pleaded with the members to restore the management’s ‘borrowing powers’ in a view to enable it run office and to have the current loans and other financial obligations be covered.

Convincing the more than 1,500 members who were present in the meeting was a hard nut to crack and it had to take the management until very late in the evening to achieve this.

Tension was very high especially in the morning hours as there were fears that some people had hired gangs to cause chaos in order to force the current office bearers out. There erupted some bitter exchange of words between a section of the members and the management, with the irate membership accusing the management of running down the company through misappropriation of funds.

Eventually, emotions cooled off and the meeting proceeded though with so many points of orders. The members agreed to support the management and pay their dues as agreed.

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