Equity Bank enters into financing agreement with Mabati Mills to boost low cost housing

By Ben Kinyanjui

Equity Bank has entered into a financing agreement with Mabati Rolling Mills (MRM) to provide steel materials to build low cost houses.Equity Bank CEO Mr James Mwangi says mortage portfolio growth is good

The joint partnership allows salaried individuals and entrepreneurs with a monthly income of at least Sh20, 000 to access an empowering micro mortgage product designed to facilitate the erection of low cost housing units using steel structures manufactured by MRM.

Equity Bank will provide financing to customers wishing to take advantage of the high quality, cost effective and time saving building solution by MRM across its network of 172 branches countrywide.

Speaking during the signing of a memorandum of understanding between the two firms, Equity Bank Group Managing Director Mr James Mwangi disclosed that the pioneering partnership would afford low-income earners affordable micro mortgage credit facilities from as low as Sh48,000 to finance building construction elements with the cheapest housing option costing about Sh195,000.

Mortgage financing is already emerging as Equity Bank’s fastest growing product category with mortgages amounting to over Sh23 billion already disbursed barely a year into Equity Bank’s mortgage products launch.

“Today we celebrate yet another milestone in Kenya’s banking and real estate development sector as we unveil the first of a kind micro mortgage product in conjunction with Mabati Rolling Mills,” Mr Mwangi said.

“This partnership confirms our joint commitment to transform the lives of Kenyans.

MRM chairman Mr Manu Chandaria said that the current low cost housing deficit stands at an estimated 200,000 units against a current availability of less than 40,000 units.

“Kenya needs about 150,000 to 200,000 houses but we are regrettably building paltry 35-40,000 units annually,” said Chandaria.

“With Equity Bank’s support, we now hope to start bridging the gap by facilitating the constructions of at least 5,000 units.”