This archive report was first published on 8 July 2021.
On July 8, 2021, Co-operative Bank of Kenya launched a pension-backed mortgage facility in partnership with Enwealth Financial Services Limited.
The new facility targets pension scheme members whose maximum allowed pension benefits for buying a house cannot cover the full asking price of the targeted house.
Co-op Bank will extend a mortgage to such pension members to cover the shortfall, with the house serving as the collateral.
“We are excited to pioneer this innovation that will enable a wider pool of Kenyans to realise their dream of owning a home,” said Jacqueline Waithaka, Co-op Bank director for corporate institutional banking.
The pension-backed product is expected to grow Co-op's owner-occupier residential mortgages from the current Sh12 billion.
According to the Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020, members of pension schemes can now use part of their benefits to buy a home.
