Finsco Africa, Co-op Bank Sign Deal to Unlock Affordable Mortgages for Kenyans and DiasporaFinsco Africa has signed a strategic partnership with Co-operative Bank of Kenya to roll out low-interest, long-tenure mortgage financing under the Kenya Mortgage Refinance Company (KMRC) framework.
The deal seeks to tackle Kenya’s housing finance dilemma by providing faster, structured access to home ownership, especially for Kenyans in the diaspora and the growing middle class in urban centres.
The agreement also includes tailored diaspora loans aimed at encouraging offshore Kenyans to invest in property back home through transparent, bank-backed advisory and financing channels.
“This MoU sets a new benchmark for real estate financing in Kenya. For the first time, we are combining deep sectoral advisory with solid financial infrastructure to empower Kenyans both at home and abroad to own property without draining their savings,” said Finsco Africa CEO John Mwaura.
According to official data, the real estate sector now contributes 6.7 percent to Kenya’s Gross Domestic Product (GDP), up from 4.1 percent in 2020. However, the sector remains constrained by limited mortgage uptake, with nearly 90 per cent of home construction still being funded through incremental personal savings commonly referred to as the “brick-by-brick” approach.
The partnership with Co-operative Bankone of Kenya’s top-tier lenders with a deep retail network unlocks financial muscle needed to scale access to formal housing loans.
The KMRC framework further allows for longer repayment periods and lower interest rates, making mortgages more accessible to the average Kenyan.
Finsco Africa, known for structuring real estate investment models and offering end-to-end advisory, brings to the partnership its deep market insight, land bank partnerships, and project execution capability.
“This partnership is aligned with the government’s Affordable Housing Programme, and we believe it will play a key role in bridging the urban housing gap,” said Co-operative Bank Director of Corporate and Institutional Banking Jacquelyne Waithaka.
In addition to targeting individual homeowners, the partnership also sets the groundwork for future collaborations in green housing, SME-focused industrial parks, and digitized property management services.
The model being piloted by Finsco and Co-op Bank could be replicated across other sectors that are constrained by informal financing and fragmented value chains.
