NAIROBI, Kenya, Feb 18 – Pan-African housing and urban development financier Shelter Afrique has signed a Sh100 million low cost housing financing deal with Rafiki Microfinance Bank which will be extended to individuals seeking to own decent homes.
Under this program, Rafiki Microfinance Bank will disburse loans as low as Sh20,000 for home improvement, going up to Sh5 million for mortgages across the country.
Rafiki Microfinance Bank Chief Executive Officer Daniel Mavindu said the decision to partner with Shelter Afrique was in response to increasing needs for home ownership finance especially by the lower end of the market.
“Housing is a basic need for every Kenyan and therefore Rafiki is focused on providing not only quality but decent and affordable homes to all Kenyans,” says Mavindu.
Mavindu says inadequate access to finance for low cost housing has attributed to the low level of home ownership in the country. He said that there was need for appropriate financial solutions to both the employed and the self-employed in middle and low end earners.
“There are approximately 20,000 mortgage accounts in Kenya, a number that clearly indicates the low level of home ownership in the 40 million plus population. There is need to diversify the mortgage market,” said Mavindu.
On his part, Shelter Afrique Managing Director Alassane Ba said that they will continue to seek more appropriate collaborative partnerships with all stakeholders in the delivery of affordable housing.
“We will continue to provide affordable financial solutions, support new building technologies and all actions that unlock the provision of affordable housing. We are restless when it comes to housing for the bottom of the pyramid,” Ba said.