Kimisitu DT SACCO has unveiled a new mortgage product offering members long-term home loans at a fixed interest rate of 9% per annum, in a move aimed at improving access to affordable homeownership and supporting Kenya’s housing agenda.
The product, developed in partnership with the Kenya Mortgage Refinance Company (KMRC), was launched during the SACCO’s Nairobi Members’ Education Forum.
The mortgage facility allows eligible members to borrow up to KSh10.5 million with repayment periods of up to 25 years. The financing can cover as much as 105% of a property’s value, enabling members to purchase or construct residential homes while easing upfront financial requirements.
Affordable financing
Speaking during the launch, Acting Chief Executive Officer Catherine Odhiambo said the mortgage marks a significant milestone for the deposit-taking SACCO and reflects its commitment to making homeownership more attainable for members.
“Today marks a historic milestone for Kimisitu DT SACCO. For the first time in our history, we are introducing a mortgage product at a single-digit interest rate of just 9% per annum. This is more than a new product. It is a demonstration of our commitment to making homeownership genuinely affordable for our members,” she said.
Odhiambo added that the institution has strengthened members’ borrowing capacity by introducing a loan multiplier of up to seven times their deposits, allowing more borrowers to qualify for larger mortgage facilities.
“We have also enhanced members’ borrowing capacity through an industry-leading loan multiplier of up to seven times a member’s deposits, enabling more members to qualify for higher-value mortgages while enjoying long repayment periods of up to 25 years,” she said.
Supporting housing goals
Kimisitu DT SACCO said the mortgage product was designed to respond to growing demand for affordable housing finance while complementing Kenya’s broader efforts to increase access to decent and affordable homes.
The SACCO said the initiative also underscores the growing role of cooperative financial institutions in promoting financial inclusion, wealth creation and long-term socio-economic development by providing members with sustainable financing solutions.
Member education
Alongside the product launch, members attending the Nairobi Members’ Education Forum received financial literacy training focused on mortgage planning, eligibility requirements, the application process and the benefits of long-term housing finance.
The event also featured exhibitions by strategic housing and real estate partners, providing members with an opportunity to engage directly with property developers, explore available housing projects and access a range of homeownership solutions under one roof.
