Absa Bank Commits KES 4 Billion to Boost Affordable Housing in Kenya

Absa Bank Kenya has increased its investment in the affordable housing sector, earmarking KES 4 billion for onward lending to the retail market up from KES 3 billion as part of efforts to bridge Kenya’s growing housing gap. This injection further strengthens its partnership with the Kenya Mortgage Refinance Company (KMRC).

The announcement was made by Zaharaa Khanbhai, Director of Commercial Property Finance East Africa at Absa Bank, during the International Housing Solutions (IHS) Affordable Housing Conference held in Nairobi. The inaugural event brought together key players from housing, finance, and policy sectors across Africa.

Khanbhai emphasized that addressing Kenya’s housing crisis requires a collective approach. “To truly unlock Kenya’s housing potential, we must address barriers such as land availability, infrastructure costs, regulatory hurdles, and limited access to finance,” she said. “Absa Bank is committed not just as a financier, but also as a partner, advocate, and enabler of change.”

Kenya’s housing deficit currently exceeds 2 million units, with demand growing by more than 200,000 units annually. This trend is mirrored across East Africa, driven by urbanization, population growth, and economic inequalities.

The government’s Affordable Housing Program has laid a policy foundation for private sector participation, encouraging scalable investment in the sector.

As part of its broader pan-African growth strategy, Absa Bank is leveraging the wider Absa Group’s resources to support developers and investors with comprehensive financial solutions. These include financing for commercial, retail, hospitality, and green infrastructure projects aligned with sustainable and inclusive urban development goals.

The move positions Absa as a key player in catalyzing long-term affordable housing solutions across Kenya and the region.