Nairobi — President William Ruto came to power last year with a promise to build more affordable houses for Kenyans. Since then, he has begun delivering on that pledge, launching several low‑cost housing projects in Nairobi and planning developments in Nyamira County and elsewhere. In March, for example, Ruto inaugurated 6,000 pocket‑friendly homes in Ziwani, Nairobi, a project that will help narrow the capital’s housing deficit. To achieve these goals, many investors have stepped forward to support the government, including the Safaricom Investment Co‑operative, which has already completed some of the low‑cost units.
Sarah Wahogo, chief executive officer of the Safaricom Co‑op, spoke to Capital Business about the cooperative’s housing initiatives. She noted that last year the co‑op began building 450 low‑cost units in Ruaka, Kiambu County. The Miran Residence, an off‑plan affordable housing project launched in 2022, is being constructed in two phases. Phase 1, already underway, comprises four blocks with a total of 200 units ranging from studios and studio lofts to one‑ and two‑bedroom apartments. A show house is now ready for viewing, and the first 200 units are slated for completion by 2024.
The uptake of the Miran Residence has been strong for an off‑plan sale, with 50 % of the units already sold. Wahogo expects sales to accelerate as construction progresses and the show house attracts more buyers. She highlighted a World Bank report indicating that Kenya needs 250,000 affordable units annually, while supply currently meets only 50,000—a deficit of about 200,000 units each year. The Miran Residence is the co‑op’s first affordable‑housing venture, and the organization plans to expand further in this sector in the coming years.
In recent years, Safaricom Investment Co‑operative has completed and handed over more than 600 housing units across Kiambu, Machakos and Kajiado counties. Notable projects include Bluebells Gardens phases 1 and 2 in Syokimau, Ruaka Ridge Apartments in Ruaka, Kantafu Serene Homes in Kantafu, Rongai Royal Villas in Rongai, and Kitisuru Villas in Kitisuru. Looking ahead, the co‑op will focus on completing Phase 1 of the Miran Residence and then moving on to Phase 2, while also integrating additional housing units into its existing land projects.
Regarding dividend payouts, Wahogo explained that the decline from a high of 28 % in 2012 to 7 % in 2023 reflects changes in accounting standards rather than performance. Since the adoption of IFRS 15 in FY 2019, revenue is recognized only when buyers complete payment for their properties, whereas previously revenue was recorded at the point of sale agreement. This shift lowers reported income and, consequently, dividend payouts. Over the past decade, the co‑op has not paid any rebates, but it has maintained steady growth since 2020 despite pandemic‑related challenges.
To diversify revenue streams, the co‑op is launching new business lines in 2023. It is developing an e‑commerce platform that will connect clients with professionals such as lawyers, surveyors, contractors and interior designers for a fee. Additionally, the co‑op plans to offer building services on behalf of land buyers, particularly those in the diaspora. After purchasing land and completing titling, clients can have Safaricom Investment construct and hand over a finished house, providing a convenient end‑to‑end solution.
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