Real estate developer Superior Homes Kenya has partnered with Absa Bank Kenya to enable home buyers enjoy 90% financing when purchasing a home.
The partnership will see the lender provide mortgages with terms of up to 25 years for existing and prospective investors.
The loan facility will be given out to those seeking to buy housing units at Pazuri at Vipingo, a holiday homes development by Superior Homes located in Kilifi County. It also seeks to provide an avenue for cross-marketing between the two entities.
A 2022 Central Bank of Kenya’s Bank Supervision Annual Report cited high cost of property purchase and limited access to long-term financing as the main factors hindering Kenyans from accessing mortgage loans.
Superior Homes Kenya Head of Sales Clive Ndege said that the partnership marks a significant milestone in their quest to help more Kenyans achieve their home ownership dreams while at the same time addressing the current housing deficit in the country.
“We strive to see more Kenyans achieving their homeownership dream. With this partnership, with Absa Bank Kenya, a like-minded partner who shares the same dream, our clients are assured of hassle-free process of owning a home,” said Ndege.
According to data by the Kenya Property Developers Association (KPDA), the current housing deficit is estimated to stand at two million houses.
The figure is also expected to continue rising due to fundamental constraints on both the demand and supply side and the increase in urbanization rate of 4.2%, equivalent to 500,000 new city dwellers every year.
Speaking during the event, Absa Bank Kenya regional manager and head of mortgage John Kaburu said that strategic partnerships were a key pillar for the bank adding that this new partnership with Superior Homes marks the start of a journey towards unlocking and fulfilling more home ownership dreams for Kenyans.
“At Absa Bank, we value the aspect of building partnerships, collaborations, and working with the eco-systems and we are happy to start this journey with Superior Homes Kenya as our key partners in the real estate sector.
“Besides the mortgage agenda, there are more financial solutions that we will be offering, including financial literacy through enlightening homeowners on the need to secure their investments,” said Kaburu.