This archive report was first published on 8 July 2021.
Co-Op Bank Partners With Enwealth to Launch Kenya’s First Pension-Backed Mortgage ¶
On July 8, 2021, the Co-operative Bank of Kenya launched a Pension-backed Mortgage loan facility for members of pension schemes in partnership with Enwealth Financial Services Limited.
The new facility is expected to enable the over 3 million members of pension schemes in Kenya to qualify for a mortgage, who otherwise would have found it difficult to raise enough funds to buy a home.
The facility will enjoy an extended repayment period of up to 20 years, subject to the borrower's retirement age.
The new mortgage is the first such facility in the market and has been made possible by the recent changes to the law, specifically the Retirement Benefits (Mortgage Loans) Act, Regulations Amendment 2020 that now allows members of pension schemes to utilise up to 40% of their accrued pension benefits as down-payment to buy a home.
Speaking during the launch event, the Director Corporate Institutional Banking at Co-op Bank, Mrs Jacqueline Waithaka, lauded the partnership between Co-op Bank and Enwealth Financial Services that brought about the new homeownership solution.
“This product is a deliberate response by the bank in support of the Government’s affordable housing pillar of the Big Four Agenda. We are excited to pioneer this innovation that will enable a wider pool of Kenyans to realize their dream of owning a home,” she said.
Additionally, the Chairman of Enwealth Mr Peter Waiyaki reiterated the need for innovative social security financial products that are responsive to the needs of times as a way of achieving economic resilience.
“This partnership between Enwealth and Co-op Bank seeks to adjust the sails for the mortgage landscape in the country,” he noted.
