A local bank has reportedly put up for sale 100 acres of land belonging to Urithi Housing Co-operative Society.
The parcel of land named Panorama Gardens has been put up for auction after the society defaulted a loan, Daily Nation reports.
Urithi acquired the property located in Gatanga in 2016 at a cost of Sh1.5 billion but paid the owner a down payment of Sh1 billion. The balance of Sh500 million was to be paid in five years’ time.
The society further took over the loan liabilities of the then owner, who had failed to service his bank loans.
The lender has reportedly appointed Nairobi-based Antique Auctions Agencies to oversee the sale of the land and has served Urithi with a 45-day redemption notice to offset a debt of Sh263 million.
Plots at Panorama Gardens were sold to investors at Sh2.25 million each after being marketed as ready for immediate development. The project attracted 400 investors.
Most of the investors said they have been unable to develop since they were not issued with title deeds.
Urithi Chairman Samuel Maina said the society is engaging the lender to sort out the matter.
“I have seen the notice, but we are engaging both parties and we hope to settle the matter as soon as possible. One of our biggest challenges to offset this debt is coming from some members who subscribed to this project we marketed as Panorama Gardens and made a down payment but have never cleared the balance,’’ said Maina.
“Out of the 400 investors who bought plots at Panorama Gardens, nearly 70 percent have cleared their balances. We are currently reaching out to the members who owe us some money to clear their balances so that we can conclude documentation and issue title deeds to the members.”
In another Urithi project dubbed Tola 3 and Tola 4 behind Mangu High School, buyers said they were kicked out by the original landowners, who claimed that the society had failed to clear the balance.
Urithi Housing Co-operative was established in 2012 and currently has 8,000 members.
Brethrens, another scandal…
Brethrens, another scandal in the offing. Lets be cautious when using these rare doubles on fraudsters, con Kenyans and evil wachorajis. Kenya now is full of these people who masquerade as angels ready to help you spend your dollars wisely. Its being that Ngare Gakuyo was also one of its co-founders, so that might explain the scandal. Urithi Sacco have being all over the republic aggressively woeing clients to buy tu plotis. So many Kenyans have fallen prey, and only time will tell whether the land already soldnout is genuine. Next on the table will be Optiven. From my observation, these guys have one thing in common: agressiveness, frequent and uninterrupted airline travel to US, talking too much and giving false promises. One would wonder then where and how they get all these money to buy land, purchase numerous air tickets from and to the US, put up infrastructure such as roads, electricity, boreholes, perimeter walls or chainlinks, and most of all, an enticing and appealing gate. Listen to Gakuyo, Urithi and Optiven convince potential clients to purchase their plots. But if you ever took Psychology 201 in college, you will note through your lens some hidden panicky, insecurity, unforseen external pressure, uncertainty, and anxiety wriggling at the back of their mind. The billions diaspora sends home every three months(quarterly) as reported by Central Bank is evident enough for any mchoraji or con artist to salivate and demand a piece of pie. Have due deligence when parting with madoubles. Ensure that whatever they claim is legitimate, and the only way to do that is use a reputable bank and lawyer, then pay it off after the deal is through. And there is no safe way of doing this. You will still use your sixth sence to up your game.
It’s sad to note that these…
It’s sad to note that these companies,Urithi & Gakuyo work together with government to fleece their members hard earned cash! The government offers protection & allows these companies to swindle their members cash & in turn they receive huge payments for the service provided! We’re just a stinking corrupt nation & we’ll remain foreign aid beggers forever!
Let them continue swindling…
Let them continue swindling their members but let them also be assured, God listens to the cry of the helpless! malipo ni hapa hapa duniani! Urithi,keep on doing what you do best after all our government also steals from its people,ama?
The problem of land buying…
The problem of land buying companies will persist of the government does not step in to protect land buyers. How can someone sell land that does not belong to him? There should be some laws to regulate this kind of business. The amount of money Kenyans are losing through this kind of schemes is mind boggling, this is as their government watches in silence