SBM Bank Kenya CEO Bhartesh Shah and Fusion Estates Group CEO Daniel Kamau during the signing of a Memorandum of Understanding in which the bank will facilitate mortgage financing of up to 90 per cent for home buyers /HANDOUTSBM Bank Kenya has partnered with Fusion Estates to offer homebuyers mortgage financing of up to 90 per cent of property value, targeting Kenyans locally and in the diaspora.
The partnership is aimed at lowering the upfront deposit required by prospective homeowners while expanding access to residential and commercial property developments by Fusion Estates, the real estate arm of Fusion Group.
The two firms signed a Memorandum of Understanding (MoU) as they seek to tap into the growing demand for property among Kenyans in the country and abroad, particularly in the United Arab Emirates, the United States and the United Kingdom.
SBM Bank Kenya chief executive Bhartesh Shah said the financing arrangement would address one of the key barriers facing prospective homeowners—the deposit required to secure a property.
“For many Kenyans, the single biggest obstacle to owning a home has never been the desire. It has always been the deposit,” Shah said.
He said financing of up to 90 per cent would reduce the initial capital required by buyers and enable more Kenyans to invest in property.
The partnership builds on an earlier collaboration between the two companies, including a UK investment tour last year targeting Kenyans in London with information on property and investment financing solutions offered by SBM Bank.
Fusion Estates is currently developing three major projects—Narumoru, Kitengela and Oak Grove City in Juja.
Narumoru has recorded sales of more than 60 per cent of units in its current phase, while Kitengela is a smaller development targeting a specific segment of the market.
Oak Grove City in Juja is the company's flagship master-planned development, comprising residential and commercial units.
Fusion Estates Group chief executive Daniel Kamau said the financing partnership would help widen access to housing and property investment for Kenyans across different income groups.
“Homeownership should not be out of reach for hardworking Kenyans. Through this partnership, we can widen access to well-planned, quality housing across different income levels, including more affordable options within developments like Oak Grove City,” Kamau said.
He added that the partnership could also make it easier for Kenyans living abroad to invest in property in the country.
Oak Grove City offers plots ranging from one-eighth of an acre to one acre, giving buyers the option to develop homes based on their preferences, subject to architectural approval.
The development targets different income segments through varying plot sizes and property options, with land prices ranging from Sh3.3 million to Sh24 million.
The partnership comes as banks and property developers increasingly seek financing models that can address the high upfront costs associated with home ownership, while also targeting the Kenyan diaspora as a source of property investment.
For prospective buyers, the 90 per cent financing means a buyer could potentially finance up to Sh9 million of a Sh10 million eligible property, subject to the bank's lending criteria and approval, leaving the balance to be met through the buyer's contribution.
The arrangement is also expected to combine SBM's mortgage financing capacity with Fusion Estates' property portfolio, creating a financing channel for buyers interested in the developer's projects.
