The Capital Markets Authority -CMA- has launched a mortgage fund for its staff.
The scheme includes mortgage facilities to buy or build homes at an interest rate of 7 per cent on a reducing balance, which remains fixed throughout the mortgage repayment period.
Speaking at the signing ceremony, S&L managing Director Caroline Kariuki said minimizing the rising housing deficit required concerted efforts by the private sector to bolster the government efforts in providing decent and affordable housing.
"Recent reports indicate that Kenya's housing needs stands at 150,000 units per year and we are only able to develop new housing units at the rate of between 20,000 and 30,000 units annually." Kariuki regretted.
Under the deal CMA will undertake to effect monthly deductions from the salaries of each of the employees taking up mortgage for the amount required to meet the monthly installments and remit to S&M.
The outsourced mortgage plan of up to 100 per cent financing will enable the staff to buy land, construct or purchase ready units.
The loans are repayable over a 20 year period or up to 60 years its available in all of their 150 branches countrywide.
In may this year S&L signed a sh600 million employees house ownership agreement with the ministry of housing that allow civil servants to own houses.
S&L has two saving accounts to facilitate customers own homes by saving up to a maximum of 4,000 per month.
The housing development bonds, for example deposit products that attracts lower holding tax of 10 per cent instead of 15 per cent
The mortgage will be financed through Kenya Commercial Bank's savings and loans group S&L at the initial capital cost of 100 million shillings.
The scheme aims at enhancing employee satisfaction and impacting positively on employee productivity.
Capital Markets Authority Chief executive officer, Stella Kilonzo said the move is a bid to provide better housing facilities at a subsidized rate.
Currently demand for housing in Kenya stands at 150,000 units per year against an annual provision of 30,000 units.
