Earn Sh25,000/Month? You Now Qualify for a Mortgage

Affordable housing developer Koto has partnered with Bamburi Cement and Commercial Bank of Africa (CBA) to deliver inexpensive homes for Kenya’s low-income earners.

According to the terms of the partnership, Koto Housing will use Expanded Polystyrene Panel (EPS) technology to construct low-cost homes, Bamburi will offer architectural drawings, bills of quantities, onsite technical support, and access to building materials, while CBA will offer mortgage financing of up to 105 per cent of the property value.

The deal, which targets those earning a salary of at least Sh25,000, will see the construction of a starter one-bedroom house at a cost of Sh500,000 with the home-owner having the choice to build incrementally to a four-bedroom maisonette for Sh4.5 million.

“We use the more affordable lightweight 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,” Koto Housing CEO Moses Nderitu said last week.

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CBA chief executive Jeremy Ngunze said the deal would make home ownership less tedious.

“With a minimum salary of Sh25,000 one qualifies for mortgage financing for incremental building, which is convenient for this income group as they can increase the size of their house as their income and family grow,” Mr Ngunze said.

The initiative, according to Bamburi Cement corporate affairs, communication, and sustainable development director Susan Maingi, will give investors some peace of mind as they make the homeownership journey.

“We step into the void that has been left by the lack of honest and skilled supervisors and other professionals in construction to ensure the homeownership journey is stress-free,” she said, adding that Bamburi will sell cement to the builders at cost-effective prices.

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