Pan-African urban housing financier, Shelter Afrique and Jamii Bora Bank Limited have signed an agreement that will see Jamii Bora Bank receive a Sh100 million loan for mortgage origination.
The loan agreement, which was signed by Shelter Afrique Managing Director James Mugerwa and Jamii Bora Bank Chief Executive Officer Sam Kimani, is meant to augment the Bank’s ability to lend for the purpose of purchasing low-cost residential housing, incremental building and home improvement.
“We have focused on seeking appropriate collaborative partnerships with all stakeholders in the delivery of affordable housing by providing affordable financial solution, supporting new building technologies and all actions that unlock the provision of affordable housing. We are restless when it comes to housing for the bottom of the pyramid and we are pleased that Jamii Bora Bank has approached us for this important housing deal,” Mugerwa said.
The main objective of the agreement was “to shore up our mortgage portfolio with a specific focus on low-cost housing development. In this respect, the maximum single loan amount we can lend is Ksh2 million.”Kimani said
The loan programme will be targeted at self-employed, salaried individuals and community groups whose monthly net income is Sh100, 000 and below.
The mortgage applications shall be subject to the bank’s lending policies and procedures and would be fully secured in line with the terms and conditions set out under the agreement.
“Under this agreement, Jamii Bora Bank shall provide mortgage finance to the applicants at an annual interest rate not exceeding 20percent ,” added Kimani.