ABSA Bank Kenya has launched a developer-driven mortgage financing programme aimed at easing homeownership challenges and accelerating housing development across the country.
The new offering features a home loan interest rate of 8.9 per cent per annum, one of the most competitive in the market, alongside financing of up to 105 per cent for eligible buyers. The initiative seeks to tackle persistent obstacles within Kenya’s housing sector, where demand continues to far outstrip supply.
Kenya currently faces a housing shortage exceeding two million units, with annual demand estimated at 250,000 households compared to fewer than 50,000 units supplied each year. Despite strong demand, developers often struggle to secure buyers during the early stages of construction, while many aspiring homeowners face difficulties accessing affordable mortgage financing.
Under the new model, Absa will facilitate direct engagement between developers and prospective buyers from the beginning of a project. Eligible customers will gain access to preferential mortgage rates on selected developments, early mortgage assessments during construction, negotiated legal and valuation services, and a simplified property acquisition process.
The approach is designed to benefit all stakeholders. Buyers can secure homes earlier through off-plan purchases and enjoy more flexible payment arrangements, while developers gain greater certainty on demand and reduce the risk of completed units remaining unsold.
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Speaking at the second International Housing Solutions (IHS) Kenya Affordable Housing Conference 2026, Absa Bank Kenya Managing Executive for Corporate and Investment Banking, James Agin, noted that the country’s housing challenge is rooted more in financing and delivery mechanisms than in demand itself.
He observed that many Kenyans earn income outside conventional employment structures, yet most financing products remain geared towards formally employed individuals with predictable earnings. According to Agin, this disconnect continues to hinder both housing delivery and access to homeownership.
He emphasised that expanding affordable housing will require stronger partnerships and innovative financing models that better align developers, financiers and buyers. By bringing all parties together earlier in the development cycle, the bank hopes to improve project viability while making homeownership more attainable.
The initiative forms part of Absa’s wider strategy to support sustainable housing ecosystems and broaden access to affordable homeownership opportunities in Kenya.
