Where in Kitengela?

The Morgage Company stand at the just ended Housing Expo was my best moment.
Its Makazi Mema product if well marketed may prove to be a game changer in the morgage industry in Kenya. That lady must be a genious!!

This is how the Makazi Mema product rolls out:
The Morgage company has brought together 2 other partners:
1. Rafiki Deposit Taking Microfinance
2. Oaks Construction Company

Step 1. The Morgage Company first conducts a due deligence to ascertain ability to pay morgage.
Step 2. An individual needs at least an eigth of an acre (50 by 100 plot)- The Rafiki Microfinance will finance upto 70% of the purchase price of the plot.
Step 3. With a title deed in hand, you are given about 6 designs to choose from ranging from 2 bedroom house of 50sqm to a 4 bedroom of 150 sqm.
Step 4. The Oaks Costruction company is given the funds to construct the hse and within 4-6 months, the house is ready for occupation.

What makes the product great?
1. The house is delivered at cost ie the smallest house of 50sqm is projected to cost Ksh 1M; the largest house of 150sqm is projected to cost Ksh 3.5M. (This means the construction costs are within a range of Ksh 20,000 - 23,500 per sqm).
2. Since the houses are delivered at cost, the morgage repayment amount is approximately half the amount a similar buyer of a house will pay if the house is bought from a housing developer. ie The 4 bedroom house of 150sqm which is delivered at a cost of Ksh 3.5M would be priced at about Ksh 6-7M if bought from a housing development company.
Repayment amounts over a 10 year period therefore range from Ksh 18,019 (for the 50sqm house) to Ksh 63,056 (for the 150sqm 4 bedroom house). The key to this reduced morgage repayment figures is based on getting the house at actual cost hence eliminating the mark-up imposed by developers.
3. Repayment starts after occupation.....means it can be a seamless transfer from rent payment to morgage payment.
4. Ready designs available for clients to choose from.

The product targets the middle class. I only wish they can upgrade the ceiling to houses whose construction costs are about Ksh 5-6M (about 220 -260sqm) with a repayment of about Ksh 90,000 - 108,000 p.m.

They also need to up their marketting of this great product......i was informed that more than 500 people registered for the product during the Expo!

Happy Hunting and Kudos to Carol Kariuki.

Thanks all for your very helpful information. Have contacted them for more information and the tour. Great weekend.

if u already have your own plot would they keep the title deed for your plot until u finish repaying the loan

Apart from the economies of scale, mortgage interest at 14% does it.