SBM Bank Kenya and Fusion Estates have signed a Memorandum of Understanding (MoU) to provide mortgage financing of up to 90% for homebuyers in Kenya. The partnership aims to attract local and diaspora investors from the United Arab Emirates, the United States, and the United Kingdom, leveraging their expertise in mortgage financing and real estate. This deal seeks to address one of the biggest barriers to home ownership in Kenya.
According to Bhartesh Shah, Chief Executive Officer of SBM Bank Kenya, the 90% mortgage financing will enable Kenyans to invest confidently in quality developments in the country. The partnership will offer financing options to individuals who may not have been able to secure a mortgage previously. This move is expected to increase access to home ownership, especially for those in lower income brackets.
Fusion Estates currently manages several projects, including one in Narumoru, where over 60% of units in the current phase have been sold. The company also has a smaller development in Kitengela and a flagship master-planned community, Oak Grove City, in Juja. Oak Grove City offers a range of plots, from one-eighth of an acre to a full acre, allowing homeowners to design their own houses subject to architectural approval.
Oak Grove City is structured to serve multiple customer segments across income levels and plot sizes, with land priced from KES 3.3 million to KES 24 million. The development includes both residential and commercial units, providing a range of options for homebuyers and investors. This project is one of the key areas where the partnership between SBM Bank Kenya and Fusion Estates will focus its efforts.
Daniel Kamau, Group Chief Executive Officer of Fusion Estates, highlighted the importance of the partnership in widening access to well-planned, quality housing across different income levels. He noted that having the right partner will make it easier for diaspora buyers to invest in property back home. The partnership aims to provide more affordable options within developments like Oak Grove City.
The partnership between SBM Bank Kenya and Fusion Estates is expected to have a significant impact on the Kenyan real estate market. By offering financing options of up to 90%, the partnership will make it possible for more Kenyans to own homes. The deal will also attract diaspora investors, who will be able to invest in property back home with ease.
The collaboration between SBM Bank Kenya and Fusion Estates demonstrates a commitment to increasing access to home ownership in Kenya. With a focus on quality developments and affordable options, the partnership is poised to make a positive impact on the lives of many Kenyans. Key projects, such as Oak Grove City, will be at the forefront of this effort.
Key points
- The partnership offers financing of up to 90% for homebuyers in Kenya.
- Oak Grove City offers plots ranging from one-eighth of an acre to a full acre, with land priced from KES 3.3 million to KES 24 million.
- The partnership aims to attract local and diaspora investors from the United Arab Emirates, the United States, and the United Kingdom.
