Kenya: Rakifi DTM partners with firm to build houses that go for Sh15,000 a month
By Morris Aron, Standard Digital News
Rafiki Deposit Taking Microfinance (DTM) and Zenith Steel Fabricators have launched a mortgage scheme targeted at the low middle-income group.
Under the arrangement, Rafiki DTM, which is a low-end deposit taking microfinance arm of fast rising Chase Bank, will offer the financing for the houses while Zenith Steel Fabricators will construct the houses. “With disposable income of between Sh15,000 to Sh35,000 Kenyans are spending on rent, the tenants can be converted to home owners through well-packaged mortgages,” said George Mbira, Rafiki DTM general manager.
“We have opened a window of financing homes construction on land anywhere in Kenya.” Rafiki DTM shall be offering low-end financing of the Zen houses within her branch network across Kenya while Zenith shall provide end-home construction of the Zen houses, as per the client specifications. Zen houses will be priced from Sh1.8 million to Sh2.2 million.
Speaking at the signing ceremony yesterday, Raheem Biviji, executive director, Zenith Steel Fabricators, said the Zen House is a steel frame system with insulated concrete wall panels.
The fixtures and finishing of individual modules of Zen house can be tailored to suit individual customer requirements. “The Zen Houses are designed such that they are quick and easy to construct on site. All modules of Zen House come complete with internal wiring and plumbing,” said Biviji. The houses will be constructed in 100 days.
“The fact that a majority of middle class cannot afford a home is the key driving force for us. We seek to finance ready units to end users or customers who want to do construction on their plots,” said Mbira. Estimated of housing demand stand at about 200,000 units with supply of only 50,000.