CBA Launches New and Affordable Property Finance Propositon
Commercial Bank of Africa has revamped its Property Finance Proposition, in an effort to encourage more Kenyans to own homes and make other affordable real estate investments.
The proposition includes mortgage financing of up to 105% of the property value, to enable CBA customers achieve one of their life-long dreams. The bank has launched a marketing campaign dubbed “105% Own Your Own Home (105OYOH)” to sensitize customers about the offering, which will also entail streamlining of processes to reduce the time taken before one can own the property, lower overall costs and creating value addition by signing strategic partnerships to give CBA customers more value.
“The journey towards home and property ownership in Kenya has always been long, tedious, expensive and often laden with uncertainties. These factors, singularly and combined, are enough to discourage one from investing in a home despite having the requisite income to enable them realize this noble dream,” said Jeremy Ngunze, Chief Executive Officer, CBA Kenya.
He added, “What many people do not know, for instance, is that if you are 24-years-old and you earn a minimum salary of Kshs. 25,000 you qualify to get a mortgage that can enable you move into your own home. This home can be expanded over time as your income and family size grows, making it very convenient.”
At the event, CBA formally signed agreements with KOTO Housing Kenya and Bamburi Cement, who are some of the strategic partners who will bring the Property Finance proposition to life. CBA will on its part offer affordable financing and access to a pool of experts, to help meet the legal and statutory requirements.
“KOTO Housing Kenya brings to the table a disruption in the home ownership narrative. We use the more affordable light weight panels to build the most affordable permanent homes in Kenya within 30 days. But more importantly, is that with KOTO homes you can start by building one room, move in, and then build the other rooms over time,” said Moses Nderitu, Chief Executive Officer, KOTO Housing Kenya Ltd.
Bamburi Cement will on the other hand bring their long standing experience in the construction industry by offering architectural drawings, bills of quantities/schedule of materials, on-site technical support and access to quality building materials through its partner outlets for the construction of homes at a cost ranging from Kshs. 500,000 for a single room unit, to 4-bedroom maisonettes going from Kshs. 4.5 million.
“The main assurance we give customers is peace of mind as they go on about their home ownership journey. We step into the void that has been left by the lack of honest and well skilled supervisors and other professionals to ensure that your journey is stress-free. We also give customers access to cost effective materials through our network of distributors across the country,” said Susan Maingi, Director of Corporate Affairs, Communication and Sustainable Development, Bamburi Cement.
Customers will only need to walk into a CBA Branch across the country to take either of these paths towards home and other real estate property ownership.
The current properties market consists of 24,500 mortgages valued at Kes. 203 Billion. The number of houses being built are less than 50,000 against a current annual demand of 240,000 houses per year for a population of more than 40 million people, a majority of whom aspire to own their homes.