NAIROBI, Kenya, Feb 17- Mortgage lender S&L, a subsidiary of the Kenya Commercial Bank (KCB), on Tuesday announced that it had increased its lending limit to Sh250 million in a bid to accelerate property development and housing in the country.
KCB Group Chief Executive Officer Martin Odour-Otieno has said that the move would also reduce the financial burden faced by many property developers.
“Owing to prudential requirements, S&L has in the past only been able to lend Sh150 million per project to meet your requirement. This limit has been increased by Sh100 million, significantly boosting your development efforts while also reducing your financing burden,” he said.
Mr Oduor-Otieno said developers would now be financed up to 85 percent of construction costs, up from 70 percent, after the company increased the ratio of mortgage finance by 10 percent.
The Chief Executive was speaking during the launch of the S&L Developers Club, which will give players in the real estate and construction sectors an opportunity to network and influence policies in the sector.
“This forum targets all professionals involved in the building industry and provides the opportunity for them to share ideas, exchange experiences and gain insights into the dynamics of their work with a view to achieving excellent standards,” he said.
Club members will receive finance for construction, while S&L will play a significant role in the sale and marketing of their developed units.
Mr Oduor-Otieno intimated that ‘The Developers Club’ is the first forum for developers, architects, quantity surveyors, engineers and estate agents, among other professionals.
He said the bank was considering introducing mortgage products in its branches in East Africa to capitalise on existing business opportunities.
“We are operating in Kenya, Uganda, Tanzania, Sudan and Rwanda and this should encourage developers wishing to venture into property development across the borders to get your plans rolling, as you have the support of your trusted mortgage finance provider,” pledged the KCB boss.