from MARIA MACHARIA in Nairobi, Kenya
Kenya Bureau
NAIROBI, (CAJ News) – A NEW partnership has been announced to reduce Kenya’s critical housing deficit and improve housing finance access for low- and middle-income families.
This is an initiative of the Association for Microfinance Institutions in Kenya (AMFI-K) and Habitat for Humanity International’s Terwilliger Centre for Innovation in Shelter (TCIS).
TCIS will provide technical assistance and product development support to AMFI-K, significantly expanding its capacity – and that of its members – to develop affordable housing finance products for low-income households.
The collaboration will improve institutions’ outreach and risk management and explore ways of incorporating climate, gender, and technology themes within the microfinance institutions’ (MFIs) portfolios.
It will also include piloting new affordable housing finance products developed through TCIS’ human-centered design methodology.
Caroline Karanja, CEO of AMFI-K, said “This initiative will establish a successful affordable housing finance model and open new opportunities for financial institutions in Kenya.”
The report, “Research on Systemic Barriers Towards Access and Usage of Housing Finance in Kenya,” released in August 2023, emphasized the need for innovative housing finance products and policy reforms to improve financial accessibility for low-income families.
High loan diversion and incremental self-construction have been some impediments.
Daniel Mhina, Habitat for Humanity Associate Director and regional lead for Housing Finance Systems in Africa. “We believe we can address market barriers and create new opportunities for additional financial institutions in Kenya to improve their housing microfinance offerings.”
In recent years, the Kenyan government launched several initiatives to address the housing crisis and financial access.
AMFI-K and TCIS’ new partnership builds on prior research collaboration between Habitat’s Terwilliger Centre, Kenya Mortgage Refinance Company (KMRC) and AMFI-K to identify barriers in Kenya’s housing finance system.
– CAJ News