This archive report was first published on 12 June 2020.
On June 12, 2020, the State Department for Housing and Urban Development Principal Secretary Charles Hinga announced a significant partnership between six Kenyan banks and the government's Affordable Housing Programme (AHP).
The six banks - Equity Bank, KCB Bank Kenya, NCBA, Stanbic Bank, Absa, and Housing Finance - have committed Sh335 billion for end-user financing backed by a partial credit guarantee.
Under the AHP, the banks will finance potential home-owners to purchase houses, both those built by the government and those delivered by private developers registered on the Boma Yangu Portal.
Over 300,000 Kenyans have registered for the AHP, with over 25,000 active contributors. Registered members who have contributed the minimum 10 per cent of the value of the houses they are interested in, qualify for the allocation of houses.
First-time homeowners will not be required to pay stamp duty and will benefit from an affordable housing tax relief of up to Sh9,000 per month.
According to Hinga, the partial credit guarantee will derisk potential home buyers and enable the self-employed and especially informal business owners to access bank mortgages.
