KCB Group will give mortgages to GDC's employees at “reasonable” rates for a maximum of 20 years.
KCB Group #ticker:KCB has entered into a partnership with Geothermal Development Company (GDC) to offer the parastatal’s employees mortgages.
KCB Group, Kenya’s biggest bank by assets, will give the mortgages at “reasonable” rates for a maximum of 20 years, as per the Salaries and Remuneration Commission recommendations.
KCB Group chief operating officer Samuel Makome on Tuesday said the cash-backed scheme is one of the innovative ways that the lender has developed through a partnership with institutions, to facilitate affordable long-term mortgage financing that allows single-digit borrowing.
“We are keen at delivering affordable housing to Kenyans by participating in both the supply and demand side. At the moment the housing demand remains high and it is only through such partnerships that we will manage to deal with the challenge,” he said.
Under the scheme, the GDC staff will be able to buy houses, build their own homes, purchase plots and enjoy equity release facilities. The lender is the largest financier of home buyers in the country with Sh54.3 million outstanding loans.
GDC chief executive and managing director Johnson ole Nchoe said the move would motivate staff and attract and retain talent.
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