SBM Bank Kenya and Fusion Estates sign deal for up to 90% mortgage financing

SBM Bank Kenya has signed a Memorandum of Understanding with property developer Fusion Estates to provide mortgage financing of up to 90 per cent of property value, in a move aimed at easing the upfront deposit burden on homebuyers.

The deal was signed by SBM Bank Kenya chief executive Bhartesh Shah and Fusion Estates Group chief executive Daniel Kamau. It targets Kenyans in the country and in the diaspora, particularly in the United Arab Emirates, the United States and the United Kingdom.

Shah said the deposit, rather than the desire to own a home, remains the single biggest obstacle for many Kenyan buyers. He said financing of up to 90 per cent would reduce the initial capital required and enable more Kenyans to invest in property. Under the arrangement, a buyer could finance as much as Sh9 million of a Sh10 million eligible property, subject to the bank's lending criteria and approval.

Fusion Estates, the real estate arm of Fusion Group, is developing three projects - Narumoru, Kitengela and Oak Grove City in Juja. Narumoru has recorded sales of more than 60 per cent of units in its current phase, while Oak Grove City is the firm's flagship master-planned development, offering plots of between one-eighth of an acre and one acre with land prices ranging from Sh3.3 million to Sh24 million.

Kamau said the partnership would widen access to well-planned housing across different income levels, including more affordable options within Oak Grove City, and make it easier for Kenyans living abroad to invest in property at home.

The agreement builds on an earlier collaboration between the two firms, including a UK investment tour targeting Kenyans in London. It comes as banks and property developers increasingly seek financing models that address the high upfront costs of homeownership while tapping the diaspora as a source of property investment.