The Safaricom Investment Cooperative Limited (SIC) invites tenders for the construction of 2 and 3 Bedroom Apartments along Mombasa Road http://sic.co.ke/downloa...%20-%20final%20copy1.pdf

I think you're the one of the few people here with good brains and I want to add onto what you've already noted. First once I read that you get bonus stock as part of dividends I found it very much cooked! Think about it, this is not even about liquidity it sound more like cooking the books to get to 42%. Before we even go far lets think through these. SIC buy properties/land and sell them, sound legit to me, the only problem is that it is so easy to manipulate the books since they can actually recognize investment income associated with appreciation of fixed assets, i.e land. Lets step back and think through it again, say SIC want to look good and decide that they need to show 42% return all the need to do is hire and appraiser and have their properties appraised at 20-30% higher, but since they won't have money because they haven't sold their properties all they need to do is give you a bonus share as dividend but remember the bonus share is tied to inflated appreciation value that might never be realized! I know I am called Drunkard here but I think my mind is working right and I have heard of alot of investment so I will tell you, unless these guys are dealing with other things apart from buying> sub dividing and selling land/plots then I will stamp this SEC as a phyramid that will eventually collapse when they won't be able to afford the 10% cash payments. Here how I came up with my conclusion, I don't think in a location where 1 acre is going for 100%, 0.1 acre goes for 142%, the ratio is unreasonably high. Unless you can buy land in places where there is still alot of land and carry it to places where there is shortage, my point is the standard deviation of price between 1 and 0.1 acre is not going to be that large and where that would have been possible, you won't find land to buy and divide! One more thing, the only people marketing SIC here are very interesting, they do not want to answer simple questions in the name of " I can't discuss private company in public" but on the other hand they want to tell you about the good stuff about the company. Looking ahead at SIC, the company can actually be legit, don't get me wrong but I am looking at 42% and I am assuming they're getting alot of people to invest in it and in turn they're constructing flats and town homes across the city, sound legit right? Yes! But everyone will be claiming 142% for 100% they invested, so unless 142% is real this is a pyramid!

The truth shall set you free.. Let us be told

@Drunkard, you have asked excellent questions that all investors should ask about all their investments. With specific regard to SIC, however, the answer to your questions is straight forward -> 45M of the total 47M income declared by SIC came from SALE of land NOT revaluation (at least according to their published accounts where they've given a breakdown of the profits from each of the sales). My opinion is that members also need to start thinking about whether the sacco offers the best deals to them if their profit margins are this large!!!

@patraz maybe they should give average returns! no one complains or is suspicious