Is Affordable Housing Realistic Among Kenyans?
By Juma / Published January 24, 2023 | 8:42 pm
“Affordable housing has 4 pillars; social housing, low-cost housing, mortgage gap, and middle to high-income households.”
“Absa Bank Kenya will analyze your payslip and be able to tell you where you fall and the kind of mortgage that can fit you.”
About 80 percent of Kenyans live in rental houses. The rate of homeownership in Kenya is still lower with stakeholders pushing the affordable housing narrative to see if the rate of Kenyans owning homes can increase home ownership.
As the discussion rages on, there has been a need for a clear definition of what affordable housing means to the majority of Kenyans. Many feel that the conversation has often left out the lowest earners in society and focused on the middle class.
In a Twitter Space hosted by Absa Bank Kenya, stakeholders from the bank, Kenya Mortgage Refinancing Company (KMRC) among others came together to dissect the subject to Kenyans. According to Geoffrey Mwaura, Head of Credit at KMRC, “Affordable housing has 4 pillars; social housing, low-cost housing, mortgage gap, and middle to high-income households.”
The country’s housing situation has a deficit of up to around 2 million every year. There is a dire need for housing in the country in two sectors; rentals and ownership. Absa says “affordable housing has to be sustainable, including expenses to be met after acquiring the house.”
According to the experts, there is more room for Kenyans to take up mortgages from financial institutions such as Absa Bank Kenya but lack the awareness of what mortgage is all about and the advantages that lie within. “There is a need to demystify mortgages in Kenya,” says Moses Njuguna, the CEO of Zenith Valuers.
Speaking during the session, John Kaburu, the Regional Manager and Head of Mortgage at Absa Bank Kenya, a Kenyan who pays a monthly rent of 30,000 can be able to own a home through a mortgage. “Absa Bank Kenya will analyze your payslip and be able to tell you where you fall and the kind of mortgage that can fit you,” he said.
According to Mr. Kaburu, Absa Bank Kenya can help one buy a house, build a house, or buy to let among others. He says Kenyans can find out by visiting an Absa Bank Kenya branch around the country. “When we help you own a home, we want you to enjoy the ownership without the stress of repayment. That is why we have to look at your finances.”