Absa Bank has unveiled a new developer-led home financing solution (developer off-taker proposition) designed to address key structural barriers slowing homeownership and housing delivery in Kenya. The proposition introduces a market-leading home loan rate of 8.9% per annum and offers financing of up to 105% for qualifying buyers.
This comes at a time when Kenya continues to face a housing deficit of over two million units, with annual demand estimated at approximately 250,000 households against a supply of fewer than 50,000 units. While demand remains strong, many developments struggle to secure committed buyers early in the project cycle, and prospective homeowners continue to face challenges accessing affordable and flexible financing.
Through this new solution, Absa is enabling earlier and more direct engagement between buyers and developers. Qualifying customers will benefit from competitive financing rates on eligible properties under partner developments, along with mortgage pre-assessments during construction, negotiated legal and valuation support, and a more streamlined home-buying process.
By connecting developers, investors, and homebuyers from the outset, the model allows buyers to engage with projects earlier, assess their mortgage eligibility during construction, and access financing tailored to their needs.
For developers, this approach improves demand visibility and strengthens project viability by reducing the risk of completed but unoccupied units. For homebuyers, it opens up access to off-plan opportunities, more flexible payment structures, and the advantages of securing property earlier in the development cycle.
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Speaking at the International Housing Solutions (IHS) Kenya 2nd Affordable Housing Conference 2026, James Agin, Absa Bank Kenya Managing Executive for Corporate and Investment Banking, said the country’s housing challenge is less about demand and more about delivery.
“Kenya’s housing challenge real constraint lies in how housing is financed, delivered and connected to the end user. A significant portion of the market earns outside traditional frameworks, yet most financing models are still designed around formal, predictable income streams. This disconnect between how people earn, how projects are funded, and how housing is priced is what continues to constrain delivery,” said Mr. Agin.
He added that scaling affordable housing will require closing the structural gaps between supply, partnerships, and homeownership.
“Scaling delivery requires the right partnerships and execution. Housing is a long-term asset, but financing remains largely short term, and that mismatch continues to affect both supply and affordability. Through this solution, we are connecting developers and buyers earlier in the cycle while making homeownership more accessible.”
The initiative forms part of Absa’s broader commitment to supporting commercially viable housing ecosystems and expanding access to sustainable homeownership across Kenya.
