Kenyans are set to benefit from Kes6 million affordable housing finance program with a 9.5 per cent interest rate with up to a 25-year repayment plan and 105 per cent financing.
The announcement comes after NCBA Group rolled out the Affordable Housing Financing Solution in partnership with the Kenya Mortgage Refinance Company (KMRC).
In the partnership, loans will be used to acquire new homes or construction projects in major towns across the country.
NCBA Group Director of Retail Banking Tirus Mwithiga said the initiative will address the current housing challenges being experienced in the country.
“Historically, the property sector has targeted upper income segment of the market. However, as a bank, we are working in partnership with other organizations such as the Kenya Mortgage Refinance Company (KMRC) and like-minded Real Estate developers to make home ownership accessible to more market segments,” said Mwithiga.
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The program is aligned with President William Ruto’s plan to bridge the housing deficit in the country through affordable housing.
The Kenya Property Developers Association (KPDA) report estimated that the current housing deficit in the county stands at 2 million houses, with nearly 61 per cent of urban households living in slums.
This deficit continues to rise due to fundamental constraints on both the demand and supply sides and is exacerbated by an urbanization rate of 4.2 per cent, equivalent to 0.5 million new city dwellers every year.
“Our property financing team will hold monthly webinars with the aim of demystifying the offer as well as discussions around the fulfilment of the affordable housing dream in order to raise awareness of the concept,” Mwithiga said.
Further, Mwithiga noted that the Bank will keep utilizing partnerships with developers like Unity Homes, Zima Homes and Maisha Development to present suitable properties through open days and on-site activations.
