Absa Bank Kenya has committed a total of KShs 4 Billion to support affordable housing loans for individuals, marking a modest but notable increase from the KShs 3 Billion it previously allocated through its partnership with the Kenya Mortgage Refinance Company (KMRC).
- •The move comes as the country continues to grapple with a deepening housing shortage and rising urban demand.
- •Kenya’s housing deficit is estimated at over 2 million units, with more than 200,000 new homes needed each year.
- •Supply continues to lag, particularly in low- to middle-income brackets where formal housing options remain out of reach for most.
“If we are truly to unlock Kenya’s housing potential, we must collectively address the barriers,” Zaharaa Khanbhai, the bank’s East Africa Director for Commercial Property Finance, said while speaking the inaugural IHS Affordable Housing Conference.
The problem isn’t just Kenyan. Across East Africa, population growth, rapid urbanization, and uneven economic development are placing similar pressures on housing systems.
While public programs like the Affordable Housing Program have made some regulatory headway, much of the actual financing burden is expected to fall on the private sector- banks included.
Absa has indicated that it is leveraging the broader capabilities of the Absa Group to structure more complex financing for commercial, hospitality, and green infrastructure projects- part of a growing focus on long-term, inclusive investments.
Still, the scale of investment needed to meaningfully close the housing gap remains far greater than what any single bank can offer. What’s clear is that while policy has opened the door, execution now depends on how both the private and public sectors can align incentives, and risk, towards genuinely affordable outcomes.
