Real estate developer Superior Homes (Kenya) PLC has partnered with Gulf African Bank to roll out Shariah Compliant mortgage financing for homeowners.
Home buyers will access mortgage financing at 11.75 per cent from the Shari’ah-compliant within two days and enjoy up to 90 per cent financing from Gulf African Bank, with a financing repayment period of up to 20 years.
Superior Homes Kenya Chief Executive Officer Shiv Arora noted that the partnership was timely and will help boost homeownership dreams for more Kenyans.
“This partnership with Gulf African Bank will allow our customers to enjoy lower profit rates and, more importantly, position us strategically to reach the niche group of customers guided by Shariah values,” said Shiv Arora.
Some housing units developed by Superior Homes Kenya include Greenpark in Athi River and Pazuri at Vipingo in Kilifi County.
For his part, Gulf African Bank CEO Anuj Mediratta noted that their customers will now be able to access financing needed to purchase housing units that meet their needs of affordability and quality.
Gulf African Bank has a similar partnership with Mi Vida Homes.
The National Housing Corporation estimates that the current housing deficit in Kenya stands at 2.0 million housing units, with nearly 61.0% of urban households living in informal settlements.
The need for 250,000 housing units against an estimated supply of 50,000 units every year results in an annual deficit of 200,000 dwelling units.
Additionally, the Kenya National Bureau of Statistics (KNBS) indicates that 83.0% of the existing housing supply is distributed between the high-income and upper-middle-income segments, with only 15.0% for the lower-middle and the remaining 2.0% for the low-income population.
According to Cytonn Investments, only 17.0% of the housing supply goes into serving the lower-middle income segment, which does not achieve the initiative’s primary objective.