You only need Sh25,000 salary to own a home

Prefab house by Koto
A house built by Koto Housing in Chuka, Meru County. PHOTO/KOTO
Commercial Bank of Africa (CBA) has signed a deal with Bamburi Cement and “low cost” housing firm Koto to deliver budget homes to Kenya’s low income earners.

According to the terms of the deal, Koto Housing will use Expanded Polystyrene Panel (EPS) technology to build bargain-priced houses for qualified land owners, while CBA will offer mortgage financing of up to 105 per cent of the house value. Bamburi will offer architectural drawings, bills of quantities, technical support and access to building materials.

The initiative, which is targeting people earning a minimum monthly salary of Sh25,000, will see Koto building a starter one-bedroom house at a cost of Sh500,000.

The home-owners will be allowed to build incrementally to a four-bedroom maisonette at a cost of Sh4.5 million as their incomes grow.
CBA chief executive officer Jeremy Ngunze said the deal would make home ownership less tedious and inexpensive.

“With a minimum salary of Sh25,000 one qualifies for mortgage financing for incremental building, which is convenient for this income group as they can increase the size of their house as their income and family grow,” Mr Ngunze said during the signing of the partnership early this month.

Koto Housing CEO Moses Nderitu said that the firm will use “the more affordable light weight panels and build the most affordable permanent houses within a month,” adding that the deal will help young Kenyans to get houses.

Bamburi Cement corporate affairs, communication and sustainable development director Susan Maingi said the initiative will give investors some peace of mind as they make their home ownership journey.

“We step into the void that has been left by the lack of honest and skilled supervisors and other professionals in the construction industry to ensure the home ownership journey is stress-free,” Ms Maingi said.