Young, working? Sh25,000 salary can get you a house
By James Wanzala | July 18th 2016
NAIROBI: Commercial Bank of Africa (CBA) has partnered with Bamburi Cement and Koto Housing to offer affordable housing in a campaign dubbed “105% Own Your Own Home (105OYOH)”.
The deal targets the young working class earning a minimum salary of Sh25,000. In the agreement, CBA will offer buyers mortgage financing of up to 105 per cent of the property value, while Bamburi Cement will offer technical support. The mortgage is repayable in 25 years.
Koto Housing, on the hand, will construct the houses using Expanded Polystyrene Panel(EPS) technology.
According to Koto Housing, the technology delivers houses within 30 days.
Speaking during the signing of the partnership last week, CBA CEO Jeremy Ngunze said the deal would make home ownership among Kenyans less tedious.
“The journey towards property and home ownership in Kenya has always been long, tedious and expensive and often full of uncertainties. These factors combined are enough to discourage one from investing in a home despite having the requisite income to enable them realise this noble dream,” Ngunze said.
He added: “What many people do not know is that when you are 24, for instance, and you earn a minimum salary of Sh25,000, you qualify for a mortgage that can enable you move into your own home. This home can be expanded over time as your income and family size grows, making it convenient.”
Ngunze, also asked the youth to consider owning houses first rather than rushing to own a car.
Kenya’s mortgage uptake is still low at about 20,000 accounts mainly due to high interest rates, which are as high as 22 per cent.
According to Koto Housing CEO Moses Nderitu, the deal is not restricted to the Koto Housing technology.
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“We use the more affordable light weight panels and build the most affordable permanent houses within a month and the partnership will just make it more convenient for young Kenyans to get houses,” said Nderitu.
Bamburi Cement’s Corporate Affairs, Communications and Sustainable Development Director Susan Maingi said the partnership will make home ownership easier for Kenyans.
“Most of the clients have been coming to us saying they have land but they do not know where to start,” she said, noting that through the partnership, they will sell cement to the builders at cost-effective price, offer technical assistance, and help them choose the designs.
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