Co-operative Bank of Kenya has announced a new simplified homebuilding process for Kenyans by combining land acquisition, construction services, and mortgage financing into one package
The package eliminates the fragmented processes and unreliable source of labour that often frustrate aspiring homeowners.
According to the bank, the move is in response to a growing number of Kenyans, 55.5% according to the 2024 Kenya Housing Survey, who prefer to build homes in phases instead of buying fully completed units.
Although the method offers flexibility and affordability, it is also prone to poor workmanship and mismanagement due to a lack of oversight and coordination.
They often face delays, stalled projects, or poor workmanship due to disjointed systems and unreliable fundis.
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Co-op Bank Partners with Optiven Limited and Everstrong Maskani LLP
Co-operative Bank has partnered with Optiven Limited and Everstrong Maskani LLP to allow customers purchase land, access construction services from, and receive milestone-based financing.
Speaking during the launch of the plan, the three companies explained that the new model is designed to address the big challenge in Kenya’s housing market.
Land purchases, building approvals, and construction often operate in silos, leading to delays, stalled projects, and financial losses, especially for those trying to build homes progressively.
“This partnership allows us to bring financing directly into a trusted, end-to-end ecosystem where land, lending, and construction are seamlessly linked,”
“Our role is to provide affordable credit and walk with clients all the way to the front door of their finished homes,” said Japhet Kahindi Ponda, Head of Mortgage Finance at Co-operative Bank of Kenya.
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How the Model Works
Under the model, Co-op Bank will provide mortgage loans of up to Ksh10.5 million at a fixed interest rate of 9.5% for a repayment period of up to 25 years.
Therefore, customers will benefit from predictable monthly payments, shielding them from fluctuating interest rates.
To ensure accountability and protect customer investments, the bank’s technical team conducts regular site inspections and only releases funds to Everstrong Maskani once specific construction milestones are achieved.
The milestone-based financing approach helps prevent incomplete or poorly built houses.
Dr. George Wachiuri, CEO of Optiven Limited, said the partnership is a solution to a problem that has held back many Kenyans.
“For too long, people have bought land and then stayed stuck, unsure of who to trust with building. With this partnership, customers now have a structured and professionally managed path to homeownership,” he said.
In addition, Henry Kyanda, Managing Partner at Everstrong Maskani LLP, explained that the plan will ensure quality assurance.
“We manage the entire building process with professionalism, from concept to keys. Our MaskaniBora program includes structural guarantees, defect liability clauses, and full insurance coverage during construction,” he said.
The integrated housing solution will be rolled out initially in selected Optiven developments inlcuding Amani Ridge in Kiambu, Achievers Paradise in Kimuka, Ngong, Success Gardens along Gatanga Road, and Victory Gardens and Happy Gardens in Kitengela.
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