Kenya Commercial Bank puts measures to ease housing shortage

NAIROBI, KENYA: Kenya Commercial Bank to take up mortgages in the market and list them in the capital markets as a measure to grow the Mortgage book.

Speaking during the Nairobi property tour, the KCB Chief Risk Officer, Rose Kinuthia said that, the escalation in the demand for modern housing in Nairobi has driven demand from buyers and tenants seeking for affordable yet comfortable homes. KCB will continue to compliment these demand through offering financial support, network and knowledge platforms to potential buyers and property developers in the city and its environs.

The city has grown immensely, raising the population of city dwellers living in apartments to 80 per cent. The constrains experienced in the supply of houses in the city has occasioned the rise of house prices. The rise of property development in the region has been spurred by land constraints and shortages making developers opt for modern structures to counter these challenges.

“The Bank also plans conclude the process of attaining a global credit rating before end of the year to inform its plans to borrow unspecified cash from the international market for its mortgage business, added Ms Kinuthia”

This year with annual housing demand is standing at 200,000 units against a supply of 50,000 units the number of people looking to buy or rent houses far out weights the number of available units and this hot completion is what is driving up house prices. Most of these housing needs are in the lower income segment and form the bulk of the national housing demands. The situation is complicated by the fact that there is a huge backlog occasioned by failure by the authorities to develop- housing for long time. The Bank has put measures to finance low cost housing as well as putting measures to encourage adoption of technology to save on building materials and maintenance costs.

The KCB S&L Mortgages financing has now been increased from 90 percent to 105 percent targeting both salaried and self-employed customers. This is therefore good news for customers as it means that they do not have to look for other mortgage-associated costs.

Currently the Bank is running a digital campaign dubbed “Draw for Zero” that will see a home buyer walk away with a 0 per cent mortgage through the KCB 105 per cent home financing loan in January 2014.

The bus tour will cover: Route one will span across Athi River, Kitengela and Kisaju areas. Route 2 was on the sides of Langata, Rongai, Kiserian and Ngong properties while Route 3 will keep to the areas of Lavington, Kilimani, Kileleshwa and Westlands upmarket locations. For Route 4, the visitors will be taken to Mombasa Road, Mlolongo, Syokiamu, Mlolongo and Athi River. Route 5 will cut across Ruaka, Kimabu Road, Ruiru and Thika Town areas and the final route will cut across Mombasa Road, Kangundo Road, Donholm, Komarock and Utawala. These areas which are regarded as the nerve center for real estate development in the Nairobi region.

The largest bank in the region in terms of asset base and branch network, currently controls more than 40 percent mortgage market share in Kenya and plays a vital role in the real estate sector in all the markets.