Patch Africa announces to fund buyers of Stima Investment Co-operative’s Ngara houses
Patch Africa Housing, a subsidiary of the Liaison Group, has announced that it will offer financing to buyers of Stima Investment Co-operative Society’s low-cost housing units in Ngara, Nairobi through a tenant purchase scheme. Homeowners will be required to pay a 25% deposit of the total purchase price, with the balance to be settled through rent-to-own payments. Interest rates for the scheme are expected to be between 7% and 9%, payable over 25 years. Under the lease agreement, a portion of the monthly rent will go towards covering the buying price.
The tenant purchase scheme will be available to buyers of Stima Investment’s low-cost houses in Ngara, with groundbreaking having taken place last month. The project, called Stima Height, will consist of 449 units and will be built on a quarter-acre piece of land in Ngara at a cost of Sh1.2 billion. The project will have 214 studio apartments, each selling for Sh2 million, and 235 one-bedroom units, priced at Sh3.9 million.
Patch Africa managing director Tom Mulwa stated that the aim of the scheme is to offer efficient financing to homeowners, allowing them to access the units. Meanwhile, Stima Investment CEO Jonathan Kinyenze said that although the deal is currently limited to Stima Height, the firm plans to expand the scheme to fund other projects owned by Stima. Some of the developments owned by Stima Investment that may be financed through Patch Africa Housing include the Ruaka Heights, which has 198 units of one, two, and three-bedroom apartments.
Work on Stima Height began on March 29 and is expected to take 24 months. Mr. Kinyenze revealed that future financing arrangements between Patch Africa Housing and Stima Investment will differ from the Stima Heights project. The tenant purchase scheme provides an innovative way for low-income earners to become homeowners, as it offers affordable and flexible payment terms. This may pave the way for more Kenyans to purchase homes, which could help alleviate the country’s affordable housing crisis.