NAIROBI, Kenya, Oct 22 – In a bid to attract more Kenyans to taking mortgages, KCB has launched an interest-free mortgage campaign dubbed “Draw for Zero”.
The digital campaign which will be driven through online interaction runs for three months from October until January 2015 and targets individuals who have an intention of owning a home.
“The campaign aims to create an emotional connection with customers by offering them a lifetime dream of owning a home come true,” said KCB Mortgages Director Sam Muturi during the launch of the campaign.
All participants will be required to apply and pre-qualify for a mortgage loan between Sh300,000 and Sh20 million.
A customer will then be required to sketch or provide a photo of their dream home which will be uploaded on the bank’s portal. A video will later be shared and uploaded for fans to watch and contestants will thereafter be required to rally support from all their online networks to vote for them.
The person with the highest number of votes wins the challenge and walks away with a zero percent interest mortgage, for which they will only pay the principal.
At the moment, the bank’s mortgage rates stands at 12.9 percent for 105 percent financing with a minimum amount being Sh300,000.
“To meet Kenya’s housing demands, there is need for government to help developers educate the market to accept diverse building solutions, which are more suitable cost-wise, and reaching medium and low income segments,” Muturi noted.
The move comes a day after the Deputy President William Ruto announced government plans to push interest rates to a single digit.