Absa Bank Kenya, a tier 1 lender, has announced a Ksh 4 billion ($30.9 million) injection into the country’s affordable housing sector, aiming to ease access to mortgage financing and support individuals and families seeking homeownership.
The announcement was made during the inaugural International Housing Solutions Affordable Housing Conference held in Nairobi, where key stakeholders from the public and private sectors gathered to explore scalable housing solutions.
Zaharaa Khanbhai, Absa Group’s commercial property finance director, unveiled the bank’s financing strategy, emphasising that the facility is designed to bridge the homeownership gap by financing not only prospective homeowners but also property investors.
“If we are truly to unlock Kenya’s housing potential, we must collectively address the barriers—from land availability and infrastructure costs to regulatory complexity and access to finance,” she said.
Khanbhai stressed that Absa is committed to being more than a financier. “We are positioning ourselves as a thought partner, advocate, and enabler of change,” she added, highlighting the bank’s intention to build long-term relationships with homebuyers and offer customized financial support.
The move was widely lauded by industry players. Shiv Arora, Superior Homes’ CEO, described the injection as a “pivotal step” that could help transform Kenya’s homeownership landscape.
Kenya faces a severe housing deficit, exacerbated by rapid population growth, urbanization, and high construction costs. According to the Centre for Affordable Housing Finance in Africa, 46.5% of Kenyans live in slums—nearly double the continental average of 24.2%—reflecting widespread inaccessibility to affordable housing.
In response, successive governments have introduced various initiatives. The Affordable Housing Programme launched under former President Uhuru Kenyatta aimed to build nearly 400,000 homes between 2018 and 2022, but by the end of that period, only 5,019 units had been completed—just 1.3% of the target.
William Ruto, the country’s president, pledged to significantly scale up efforts, targeting the construction of 200,000 affordable housing units annually. His administration has introduced tax incentives, housing funds, and investment vehicles such as Real Estate Investment Trusts to stimulate development.
Absa’s capital injection aligns closely with this broader national vision. By targeting both individuals and institutional investors, the bank is positioning itself as a strategic enabler of inclusive homeownership. The Ksh 4 billion facility could catalyze greater mortgage access and market activity across income segments.
With the government and private sector working in tandem, Kenya’s housing ambitions may finally be within reach.
Note: The figure reported in Kenyah Shilling has been converted using $1 = Ksh 129.2 as of August 1, 2025
