BUSINESS MODEL MARKETING STRATEGY AND FUNDING STRUCTURE AFFECT UPTAKE OF HOUSING FINANCE NEW REPORT
- Sep 1, 2023
- 1 min read
Clive Ayuko
Nairobi, Kenya 31st August 2023
A News report developed by Habitat for Humanity in conjunction with Kenya Mortgage Refinance Company in conjunction with the o and Association of Microfinance Institutions of Kenya AMFIK has outlined Business Model: which entails the framework guiding how a financial service provider operates and delivers services to generate income, Marketing Strategy of the lender, the funding structure which determines the availability, affordability and lending terms of the housing finance products and Institutional factors which include government policy for instance Affordable Housing Programme, Vision 2030 or the Big 4 agenda as some of the major systemic barriers affecting the uptake of mortgage products in Kenya.
The report launched today morning at a Nairobi Hotel dubbed systematic barriers towards access and usage of housing finance in Kenya which focussed on low to middle income groups unearthed some of the barrier impeding uptake of loan products for construction, renovation and modernization of homes.
The housing finance products loans amounts vary for loan amounts ranging from Ksh5500 to Ksh100 million. Some of the financial institutions offering KMTC backed loans include ABSA, Cooperative Bank, Credit Bank, Diamond Trust Bank DTB, Housing Finance Corporation, Kenya Commercial Bank KCB, NCBA and Stanbic Bank with loan offered charging interest rates of between 9% to 9.5%. The report also listed Stanbic as Bank offering the highest loan to value ratio.
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