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% for home buyers/HANDOUTSBM Bank Kenya and Fusion Estates have signed a memorandum of understanding to provide homebuyers with mortgage financing of up to 90 per cent for properties developed by the real estate company.
The partnership is aimed at expanding access to home financing and attracting Kenyan investors in the diaspora, particularly those based in the United Arab Emirates, United States and United Kingdom.
Under the agreement, the two organisations will combine SBM Bank's mortgage financing services with Fusion Estates' portfolio of residential and commercial developments.
SBM Bank Kenya Chief Executive Officer Bhartesh Shah said the financing would address the deposit requirement faced by prospective homebuyers.
“For many Kenyans, the single biggest obstacle to owning a home has never been the desire. It has always been the deposit,” Shah said.
“By offering financing of up to 90 per cent, we are removing one of the biggest barriers to home ownership and making it possible for Kenyans to invest confidently in quality developments in the country.”
The partnership also builds on an earlier collaboration between the two companies, which included a UK tour last year to engage Kenyans in London on investment opportunities available through SBM Bank.
Fusion Estates Group Chief Executive Officer Daniel Kamau said the partnership would help expand access to housing across different income levels.
“Home ownership should not be out of reach for hardworking Kenyans,” Kamau said.
He said having a financing partner would also make it easier for Kenyans living abroad to invest in property in the country.
SBM Bank Kenya CEO Bhartesh Shah and Fusion Estates Group CEO
Daniel Kamau during the signing of Memorandum of Understanding in which the
bank will facilitate mortgage financing of up to 90% for home buyers/HANDOUTFusion Estates currently has three flagship developments, including Narumoru, Kitengela and Oak Grove City in Juja.
The company said more than 60 per cent of units in the current phase of its Narumoru development have been sold.
Oak Grove City is a master-planned development comprising residential and commercial units.
The development offers plots ranging from one-eighth of an acre to one acre, with buyers allowed to design their own houses subject to architectural approval.
According to Fusion Estates, plots at Oak Grove City are priced between Sh3.3 million and Sh24 million.
The company said the development is structured to serve different customer segments through varying plot sizes and housing options.
The new financing arrangement is expected to give prospective buyers access to mortgage facilities while reducing the amount required as an initial deposit.
SBM Bank Kenya currently offers mortgage and credit facilities for customers seeking to purchase homes. SBM Bank Kenya
Fusion Estates is a subsidiary of Fusion Capital and develops and manages residential and commercial property in Kenya. Fusion Estates
The two organisations said the partnership would support investment in the local property market while giving Kenyan buyers, including those living abroad, additional financing options.
