Affordable Housing: Transforming Dreams Into Reality For Laikipia County.
Updated on: Jul 17, 2023
The Department of Infrastructure, Lands, Housing, and Urban Development, in partnership with Absa Bank, organized a conference in Nanyuki and Nyahururu. The aim of this event was to enlighten and guide the staff of Laikipia County on the path to achieving homeownership through the national government's affordable housing program. Absa Bank, in association with the Kenya Mortgage Refinance Company (KMRC), offers affordable housing loans through a public-private collaboration. These loans are made available to banks and saccos at a fixed interest rate of 9% for Laikipia county employees and 9.5% for all other customers.
The administration of Laikipia County has successfully identified suitable locations to construct these affordable housing facilities, catering to the diverse financial capabilities of its employees. Elizabeth Nganga, the sales manager at Absa, highlighted multiple options for Laikipia county employees to achieve property ownership through Absa's financial assistance. The repayment schedule spans up to 25 years and is evenly distributed based on the terms of employment and the remaining years until retirement.
Laikipia county employees have the option to acquire fully constructed houses provided by the county government, with 100% financing available ranging from Ksh 1M to Ksh 6M, without requiring any initial deposit. However, for properties exceeding Ksh 6M up to the maximum limit of Ksh 8M, a 10% contribution is necessary.
Alternatively, if individuals possess their own land, Absa Bank can provide financing for the construction of their own properties. Furthermore, individuals can purchase properties outside the county, as long as the value does not exceed Ksh 8 million.
For those interested in the "buy and build" approach, the bank will finance the acquisition of land as well as the construction of a home, on the condition that the applicant contributes 20% of the total cost of both the land and construction.
Absa Bank also offers a flexible repayment plan with a fixed interest rate of 9% for the first nine years. Thereafter, the interest rate can be negotiated based on prevailing market rates.
In addition, the bank extends mortgage opportunities for unfinished houses to individuals who are unable to complete their homes, as long as the loan amount does not surpass Ksh 8M.
Remortgaging is also an option, allowing individuals to apply for another loan or mortgage from Absa Bank, even if they already have an existing loan from another bank.
It is important to note that individuals are not eligible to obtain multiple mortgages for affordable housing. Furthermore, if one already has an existing mortgage for the construction of a home, they do not qualify to apply for the affordable housing program.
Through this initiative, we strive to restore dignity to the beneficiaries, some of whom endure harsh living conditions by providing them with a chance at redemption. This opportunity also serves as a valuable platform for our young employees to save and invest in their future. Chief Officer Housing and Urban Planning, Mr. Kenneth Kibaara expressed his optimism.
The administration of Laikipia County has successfully identified suitable locations to construct these affordable housing facilities, catering to the diverse financial capabilities of its employees. Elizabeth Nganga, the sales manager at Absa, highlighted multiple options for Laikipia county employees to achieve property ownership through Absa's financial assistance. The repayment schedule spans up to 25 years and is evenly distributed based on the terms of employment and the remaining years until retirement.
Laikipia county employees have the option to acquire fully constructed houses provided by the county government, with 100% financing available ranging from Ksh 1M to Ksh 6M, without requiring any initial deposit. However, for properties exceeding Ksh 6M up to the maximum limit of Ksh 8M, a 10% contribution is necessary.
Alternatively, if individuals possess their own land, Absa Bank can provide financing for the construction of their own properties. Furthermore, individuals can purchase properties outside the county, as long as the value does not exceed Ksh 8 million.
For those interested in the "buy and build" approach, the bank will finance the acquisition of land as well as the construction of a home, on the condition that the applicant contributes 20% of the total cost of both the land and construction.
Absa Bank also offers a flexible repayment plan with a fixed interest rate of 9% for the first nine years. Thereafter, the interest rate can be negotiated based on prevailing market rates.
In addition, the bank extends mortgage opportunities for unfinished houses to individuals who are unable to complete their homes, as long as the loan amount does not surpass Ksh 8M.
Remortgaging is also an option, allowing individuals to apply for another loan or mortgage from Absa Bank, even if they already have an existing loan from another bank.
It is important to note that individuals are not eligible to obtain multiple mortgages for affordable housing. Furthermore, if one already has an existing mortgage for the construction of a home, they do not qualify to apply for the affordable housing program.
Through this initiative, we strive to restore dignity to the beneficiaries, some of whom endure harsh living conditions by providing them with a chance at redemption. This opportunity also serves as a valuable platform for our young employees to save and invest in their future. Chief Officer Housing and Urban Planning, Mr. Kenneth Kibaara expressed his optimism.
