Sh100mn to finance Jamii Bora mortgages

September 10, 2014
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 JBBL Chief Executive Officer Sam Kimani said the main objective of the agreement is to shore up their mortgage portfolio with a specific focus on low-cost housing development/FILE
JBBL Chief Executive Officer Sam Kimani said the main objective of the agreement is to shore up their mortgage portfolio with a specific focus on low-cost housing development/FILE
NAIROBI, Kenya, Sept 10 – Shelter Afrique has extended Sh100 million to Jamii Bora Bank Limited (JBBL) that will be used by the bank for offer mortgages for low cost housing.

The loan agreement is meant to enhance the bank’s ability to lend for the purpose of purchasing low-cost residential housing, incremental building and home improvement.

JBBL Chief Executive Officer Sam Kimani said the main objective of the agreement is to shore up their mortgage portfolio with a specific focus on low-cost housing development.

He said the loan programme will be targeted at self-employed, salaried individuals and community groups whose monthly net income is Sh100,000 and below.

“The mortgage applications shall be subject to the bank’s lending policies and procedures and would be fully secured in line with the terms and conditions set out under the agreement,” he said.

The agreement will see Jamii Bora Bank provide mortgage finance to the applicants at an annual interest rate not exceeding 20 percent with the maximum single loan amount set at Sh2 million.

Under the deal, Jamii Bora Bank will pay interest semi-annually to Shelter Afrique for a period of seven years with the agreement taking effect immediately.

“As Africa continues to develop what we expect to see is rapid urbanisation; by most measures 70 percent of Africa will be living in urban centers by 2030 and this points to the huge gap between demand and supply for adequate and affordable housing; we believe that our social housing line will be one of the many ways to bridge this gap,” Shelter Afrique Managing Director James Mugerwa said.

He noted that there was a large shortage of decent housing in Nairobi and other parts of Kenya, hence the need to come up with tailor-made solutions suitable for the low to middle income groups.

“We have focused on seeking appropriate collaborative partnerships with all stakeholders in the delivery of affordable housing by providing affordable financial solution, supporting 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 and we are pleased that Jamii Bora Bank has approached us for this important housing deal,” Mugerwa added.

JBBL has in recent months launched partnerships to develop residential property for academic institutions with Sh1 billion hostel development project in Murang’a University College and a Sh30 million hostel construction at Shanzu Teachers’ college.

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