This archive report was first published on 8 July 2021.
Co-op Bank has launched a groundbreaking Pension-backed Mortgage loan facility for members of pension schemes in Kenya, offering a lifeline to over 3 million members who previously struggled to raise funds for a home.
The innovative facility, which is the first of its kind in the market, allows pension scheme members to utilize up to 40% of their accrued pension benefits as a down payment to buy a home, as per the Retirement Benefits (Mortgage Loans) Act, Regulations Amendment 2020.
With this facility, pension scheme members can purchase a developed property anywhere in Kenya with a ready title deed or certificate of lease, provided that the house is a residential property for their own occupation.
Speaking during the launch event, Co-op Bank's Director Corporate Institutional Banking, Mrs. Jacqueline Waithaka, praised the partnership between Co-op Bank and Enwealth Financial Services, saying:
“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.”
Enwealth Financial Services' Chief Executive, Mr. Simon Wafubwa, added that owning a home and having an adequate income at retirement are critical pillars for a lifetime of financial well-being and dignity.
The Chairman of Enwealth, Mr. Peter Waiyaki, emphasized the need for innovative social security financial products that respond to the needs of the times, saying:
The pessimist may complain about the wind while the optimist would expect it to change but through strategic synergies, the leader adjusts the sails. This partnership between Enwealth and Co-op Bank seeks to adjust the sails for the mortgage landscape in the country.
Co-op Bank's Pension-backed Mortgage loan facility is a significant step towards achieving the Government's affordable housing goals and providing Kenyans with a chance to own their dream homes.
