KCB, Superior Homes deal unlocks 105% KMRC mortgage access for homebuyers

In a groundbreaking move aimed at revolutionizing access to affordable housing in Kenya, KCB Bank and Superior Homes have partnered to offer homeowners access to the KMRC mortgage facility at 105 per cent. This strategic collaboration not only bridges the gap between property development and financing but also paves the way for greater accessibility to homeownership for middle-income earners in the country. Shiv Arora, the CEO of Superior Homes, emphasized the significance of this partnership during an interview with CNBC Africa. He highlighted how the alliance with KCB Bank Group would provide clients with attractive mortgage financing options, thereby enabling them to transition from renting to homeownership seamlessly. Arora pointed out that the Kenyan government's initiatives to facilitate access to affordable mortgages align with Superior Homes' vision of empowering individuals to own homes. The partnership leverages KCB's position as the second-largest shareholder in KMRC and Superior Homes' status as the largest master plan developer in Kenya. One of the key aspects of this collaboration is the unique offering of 105 per cent financing, which eliminates the need for buyers to provide a deposit upfront. Additionally, the mortgage covers legal fees and stamp duty, making the process more affordable for aspiring homeowners. The competitive interest rate of 9.5 per cent further enhances the attractiveness of the financing solution compared to prevailing rates in the region. The interview delved into the market gaps and financing bottlenecks that have historically hindered homeownership in Kenya. Arora underlined the role of private sector interventions in driving the development of mid-income and affordable housing, culminating in a shift from renting to ownership. The collaboration between Superior Homes and KCB addresses the critical issue of access to finance at reasonable rates, thereby empowering buyers to fulfill their homeownership aspirations. Arora reassured that the 100 per cent mortgage facility offered through the partnership would not lead to inflated housing prices. He emphasized that the development of properties would proceed based on market dynamics, and the limited number of mortgages in Kenya relative to the population mitigates any inflationary pressures. The discussion extended to environmental, social, and governance (ESG) considerations in construction practices. Superior Homes showcased its commitment to sustainability by incorporating energy-efficient features such as solar water heating and street lights, as well as rainwater harvesting. The company's emphasis on human capital development involves hiring local labor, providing training, and fostering community well-being alongside development projects. Arora highlighted the critical role of sustainability and ESG criteria in attracting equity investors and financiers in today's market. Beyond environmental sustainability, the focus on building resilient communities through robust governance structures ensures the long-term success of development projects. The partnership between KCB Bank and Superior Homes signifies a milestone in the Kenyan real estate landscape, offering a comprehensive solution to the longstanding challenges of affordability and access to financing. As the collaboration unfolds, it is poised to empower more individuals to realize their dream of owning a home and contribute to the growth of the housing sector in Kenya.