Urithi dismisses financial crisis reports

Urithi Housing Cooperative Society Limited has come out to allay fears that it is facing a financial crisis and is headed for collapse.

This is after a local daily reported that Urithi’s key housing venture, Panorama Gardens, was set to be auctioned after the organization allegedly defaulted on loan repayment.

However, in a statement issued on Monday, Urithi Chairman, Samuel Maina said the organization is financially stable and that it’s 104-acre Panorama Gardens property on Thika – Gatanga road is not up for sale as earlier reported.

According to Mr. Maina, there was an anomaly with the bank, an issue that has since been resolved.

“Agreements and commitments by all parties were reached and documented. It is important to note that the property in question is therefore not for sale as earlier reported in a local daily,” said the Urithi boss.

He further clarified that the issue in question only involved Panorama gardens and the matter has since been resolved.

“There is no reason to panic. Due to the harsh economic conditions, some of the members who invested in the project failed to remit their periodic contributions on time. This does not mean that that spills over to the 60 ongoing projects since each project is autonomous,” said Mr. Maina.

Urithis’s Panorama Gardens was sold as ready plots for immediate development and attracted 400 investors, with an eighth of an acre selling for Ksh.2.25 million.

The land was acquired through bank financing on a five-year plan and has been serviced for three years now, according to the Urithi Chair.