Low income earners are to access home loans of up to Sh5 million, after Shelter Afrique,
Borrowers will access the money at a fixed interest rate of 18 per cent, with repayment periods of between 10 and 20 years. The lenders said they will target people earning from Sh20,000 with the home loans.
"This means the interest rate charged on any outstanding loan won't change during the period," said
Rafiki's chief executive Daniel Mavindu said the partnership was informed by the huge deficit in housing that has resulted from lack of financial inclusion, with the youth being hardest hit by lack of access to decent housing.
"Over the years, the country has accumulated a housing deficit of over three million, which has led to demand for housing exceeding supply and proliferation of slums. Now we are telling people to stop renting houses and move to their own homes," he said.
BÂ urged the government to invest more in infrastructure and open up the outskirts of cities and towns to enable people access to cheaper land only available far from urban areas.
"The government has to make sure accessibility is improved so that people at the bottom of the economic pyramid are able to buy cheap land far from cities where they can live decent lives and commute fast over long distances to their workplaces," he said.
The satellite towns model, he said, would only work if the government formulates favourable policies that can influence partnerships for housing programmes to close the home affordability gap.
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