Treasury plans funding mortgages through sacco loans

Mr Rotich,the Finance PS,announced yesterday during the kes2.3 Trillion budget briefing, that the Treasury has a plan to create a multi billion lending base for Sacco's to access cheap funding in order to spur house development this financial year.

The move was as a result of the increased housing units gap at a deficit of 150000 housing units each year.In partnership with multilateral lenders ,the Treasury will avail home loans to developed at a corporate rate of 20 percent with other taxes and levies zero rated.

The Treasury also plans to provide low cost housvloans to low income earners through their Sacco's.Treasury will ensure the repayment period get elongated up to a high of 15 years after which a borrower clears the loan in full.

There are no specificity saacos named to have permission to participate in the program.We hope and assume that all Sacco's will have equal opportunity to ask for a stake from treasury when the plan will be ripe.However,there's no specific date set for the program.Its within the whole financial year.