Industry News
Do you earn Ksh25,000/month? You now qualify for a mortgage
The deal will see the construction of a starter one-bedroom house at a cost of Sh500,000.
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 individuals earning a minimum monthly salary of 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 at a cost of Sh4.5 million.
“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, Koto Housing CEO Moses Nderitu said during the signing of the partnership last week.
READ: Build a sleek house in 14 days with Koto
CBA chief executive Jeremy Ngunze said the deal would make home ownership less tedious and inexpensive.
“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 home ownership journey.
“We step into the void that has been left by the lack of honest and skilled supervisors and other professionals in the construction industry to ensure the home ownership journey is stress-free,” she said, adding that Bamburi will sell cement to the builders at cost-effective prices.
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