Property developer Purshottam Developers Ltd, and Stanbic Bank Kenya have entered a structured mortgage finance partnership that will enable customers own homes at the just completed Magic Dash Apartments in Ruaka, affordably.
Kenyans will be able to acquire the 1-, 2- and 3-Bedroom apartments with a standard minimal deposit and subsidized mortgage loan interest at 9.5% for loan amounts below Kshs 8M as part of the Kenya Mortgage Refinance Company (KMRC) and Stanbic Bank Kenya partnership.
The Kshs 400 million residential complex is built on a quarter acre land parcel located on main Limuru Road in Ruaka, Kiambu County.
The lower stamp duty costs in Kiambu County, improved connectivity due to the new dual carriageway, access to Eastern Bypass and Kiambu Road make the area attractive to developers, homeowners and property investors in general.
The Open Week for the apartments scheduled for April 20th to 27th this month will showcase the 1-bedroom duplex as well as the different types of 2- and 3-bedroom apartment units ranging from Kshs 9M to Kshs 11M.
“Under this partnership customers will access competitively priced mortgages with lower monthly repayments.
“Our strategic focus is to help bridge the home ownership deficit across the country as the country’s national housing goals,” said Purshottam Developers Managing Director Jayesh Chavda during the announcement of the project completion this month.
“Ruaka is a very cosmopolitan area perfect for Kenyans looking for ease of commuting and connection to eastern bypass which connects to Kiambu and Thika Roads, Runda as well as Parklands, Westlands and Karen.
“Nearby are also UN offices, shopping malls including Two Rivers, Village Market and Rosslyn Riviera.”
Stanbic Bank Kenya Head of Mortgages Austin Waga said the partnership will help Kenyans access good quality homes at an affordable mortgage rate.
Stanbic Bank Kenya is also one of the only banks to offer 105% financing for properties under Kshs 20M.
According to the Kenya Banker Association (KBA), Stanbic Bank Kenya Limited was the second largest primary mortgage lender in Kenya, with a market share of 13.1%, after Kenya Commercial Bank Kenya Limited (KCB).
The agreement comes on the heels of the state-backed Kenya Mortgage Refinancing Company’s (KMRC) successful corporate bond issuance to raise long-term capital. KMRC’s quest is to lower mortgage interest rates and lengthen repayment tenors, making housing more affordable and improving the viability of home loans as a pathway to home ownership for Kenyans.
Stanbic Bank Kenya is part of the eight commercial banks, eleven (11) Deposit Taking Savings and Credit Co-operatives (Saccos) and one (1) Microfinance Bank that form the current shareholding of the KMRC.
Magic Dash Apartments commenced construction in December 2019 and will be open for occupation by end of April this year.