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NCBA Rolls Out Affordable Housing Mortgage Offering

March 16, 2023

NCBA in partnership with the Kenya Mortgage Refinance Company (KMRC) has today rolled out a home acquisition initiative that will enable Kenyans own a home at affordable interest rates.

The proposition will allow NCBA customers to own homes starting from 9.5% interest rate with up to 25 years of repayment and 105% home financing, with a limit of a loan amount of up to Ksh 6 Million to be issued. The mortgage loan will be used to acquire new homes or to construct for residential purposes, in major towns across the country.

This proposition will be available to individuals who earn a gross income of KES 150,000 and below, making it a property finance solution for the mass market. Under the proposition, couples will also have the option to combine incomes as long as they are within the KES 150,000 threshold. Furthermore, the 105% financing offered reduces the down payment required in traditional mortgages, where customers will get additional financing for the legal and stamp duty fees.

The affordable housing initiative is aligned with the Government’s commitment to delivering a series of ambitious social programmes to promote long-term economic development and is open to all Kenyans- employed and in business.

Tirus Mwithiga, NCBA Group Director of Retail Banking said the initiative seeks to address the current housing challenges being experienced in the country.

“Historically, the property sector has targeted the 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 homeownership accessible to more market segments,” said Mwithiga.

Mwithiga explains, “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. In addition, we will keep utilizing our partnerships with developers like Unity Homes, Zima Homes and Maisha Development to present our offering in suitable properties through open days and on-site activations.

“Homeownership dignifies our communities and provides opportunities for individuals and families to build wealth over time. In line with KMRC’s strategic focus of providing fixed-rate, long-term funds to catalyze the growth of home loans, we are committed to work with NCBA and providing all the support that the bank needs on this journey. Ultimately, we expect more Kenyans to access these affordable home loans being rolled out,” said Geofrey Mwaura, Head of Credit at KMRC.

According to a report by Kenya Property Developers Association (KPDA), it is estimated that the current housing deficit 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 side and is exacerbated by an urbanization rate of 4.2%, equivalent to 0.5 million new city dwellers every year.

The property finance unit at NCBA Bank seeks to provide customers with end-to-end solutions. NCBA Bank property loans cover the purchase of plots, single residential or commercial units, purchase of multiple residential or commercial units, purchase of office blocks, Go Downs or light industrial properties.

NCBA has signed partnerships with quantity surveyors, valuers, furniture shops, and house fittings dealers among others who will provide support to prospective clients as additional services that come with mortgages.