Thousands of Kenya Defence Forces (KDF) personnel are set to benefit from a new home ownership initiative after the government with KCB Group to provide affordable mortgages under the Affordable Housing Programme (AHP).
The agreement will allow eligible military officers to access the Civil Servants Housing Mortgage Scheme at a fixed four per cent interest rate, significantly lower than most existing mortgage rates available under the Affordable Housing Programme.
Subsidised Mortgage Rates
Under the Affordable Housing Programme, mortgage rates are currently determined by income brackets. Buyers earning up to KSh19,999 per month pay a three per cent interest rate for social housing, while those earning between KSh20,000 and KSh149,000 pay six per cent for affordable housing. Individuals earning above KSh150,000 qualify for market-rate housing at a nine per cent interest rate.
The new arrangement gives eligible KDF personnel access to home financing at a fixed four per cent rate, offering a more affordable pathway to homeownership.
The facility will enable officers to purchase completed houses, buy residential plots, construct new homes, complete ongoing housing projects, combine land purchases with construction financing, release equity from existing properties, and transfer mortgages from other financial institutions.
KDF officers of the Islamic faith will also be able to access financing through KCB’s Sahl, a Shariah-compliant home financing product.
Improve Welfare of Soldiers
Speaking during the signing ceremony, Housing and Urban Development Principal Secretary Charles Hinga said the initiative is designed to enhance the welfare of military personnel while recognizing their service to the nation.
“We have unlocked home ownership for army personnel whose selfless service continues to make us proud. Civil Servants Mortgage Scheme is no longer for senior officers only but for eligible army personnel,” Hinga said.
Ministry Welcomes Home Ownership Pathway
Defence Principal Secretary Patrick Mariru described the partnership as a significant step towards addressing one of the most important needs of serving officers.
“Provision of decent housing is a fundamental basic right enshrined in the Constitution of Kenya. But today, we celebrate them by opening a home ownership pathway for them,” Mariru said.
KCB Targets Over 50,000 Active KDF Personnel
KCB Bank Kenya Managing Director Annastacia Kimtai said the programme significantly expands affordable housing financing within the public sector.
“The onboarding of more than 50,000 active KDF personnel presents a significant milestone in broadening access to affordable housing finance,” Kimtai.
Kahariri Says Housing Security Improves Service Delivery
Chief of the Defence Forces Charles Kahariri said the initiative will improve the welfare of military officers and their families while providing greater financial security.
“This partnership gives our personnel a practical and affordable opportunity to own homes beyond service accommodation,” Kahariri said.
“By widening access to mortgage financing, we are strengthening the welfare of our officers and their families, giving them greater security and confidence as they plan for the future. When our people know that their families are secure, they can serve the nation with even greater focus and commitment.”
The partnership forms part of the government’s broader efforts to increase homeownership and accelerate the implementation of the Affordable Housing Programme across the country.
