Absa Bank Kenya has partnered with real estate developer, Superior Homes, to allow homebuyers access 90 percent financing. 

According to press release, under this collaboration, Absa Bank Kenya will offer mortgages with terms extending up to 25 years. 

This will apply to individuals interested in purchasing housing units at Pazuri at Vipingo, a holiday home development by Superior Homes in Kilifi County.

At the same time, the deal aims to facilitate cross-marketing opportunities between the two entities.

Superior Homes Kenya’s Head of Sales, Clive Ndege, stated that the collaboration signifies a significant step in helping more Kenyans realize their homeownership dreams.

Ndege further noted that it will also address the country’s housing deficit.

“As a company, we strive to see more Kenyans achieving their homeownership dreams. With this partnership with Absa Bank Kenya, a like-minded partner who shares the same dream, our clients are assured of the hassle-free process of owning a home,” said Ndege.

The partnership addresses challenges outlined in the 2022 Central Bank of Kenya’s Bank Supervision Annual Report, citing high property purchase costs and limited access to long-term financing as impediments to Kenyans obtaining mortgage loans. 

Also read: Absa Moves to Boost Financial Wellness of Kenyans

Housing deficit 

The partnership addresses challenges outlined in the 2022 Central Bank of Kenya’s Bank Supervision Annual Report.

It cited high property purchase costs and limited access to long-term financing as impediments to Kenyans obtaining mortgage loans.

With the housing deficit estimated at 2 million houses, according to the Kenya Property Developers Association (KPDA), the partnership is seen as a move to alleviate challenges on both the demand and supply sides. 

Absa Bank Kenya’s Regional Manager and Head of Mortgage, John Kaburu, emphasized that strategic partnerships play a crucial role for the bank.

The collaboration with Superior Homes, he stated, marks the beginning of a journey to fulfill more home ownership dreams for Kenyans.

“At Absa Bank, we value the aspect of building partnerships, collaborations, and working with the eco-systems and we are happy to start this journey with Superior Homes Kenya as our key partners in the real estate sector.

Besides the mortgage agenda, there are more financial solutions that we will be offering, including financial literacy through enlightening homeowners on the need to secure their investments,” said Kaburu.

Also read: Absa Bank Kenya Records 51% Net Profit Growth

Absa Bank Mortgage financing

Absa Kenya provides affordable home loans with a competitive interest rate of 9.5 percent, specifically catering to low and middle-income earners.

The bank distinguishes itself by offering extended mortgage terms of up to 25 years and providing financing of up to 90 percent.

Moreover, it leverages the strengths of a robust public-private partnerships, bringing together expertise, technology, financial resources, infrastructure, incentives, and other essential elements to address the housing needs of the community.