Affordable mortgage

Affordable mortgage
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Affordable mortgage
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Financials
Corporate and Retail Banking
Business Model Description

Provide affordable mortgages for low and middle income households to strengthen their access to finance.

Expected Impact

Contribute to financial inclusivity and the quality of life of Kenya's population by paving the way for home ownership.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
No Poverty (SDG 1) Reduced Inequalities (SDG 10) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Good health and well-being (SDG 3) Gender Equality (SDG 5) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • 1) Khanna, M., Wimpey, J.S., Bruhn, M., Singh, S,, Hommes, M. and Sorokina, A. (2017). MSMEs Finance Gap: Assessment Of The Shortfalls And Opportunities In Financing Micro, Small And Medium Enterprises In Emerging Markets. World Bank. 2) UNKenya (2020). The Socio-Economic Impact of COVID-19 in Kenya. 3) World Bank (2019). Country Private Sector Diagnostic - Creating Markets In Kenya: Unleashing Private Sector Dynamism to Achieve Full Potential. 4) International Finance Corporation (2019). Her Home - Housing Finance for Women, https://housingfinanceafrica.org/app/uploads/HousingFinanceWomen1-29-20.pdf 5) Communication Authority of Kenya (2019). Annual Report 2019 6) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 7) Republic of Kenya (2018). Third Medium Term Plan 2018 – 2022 Transforming Lives: Advancing Socio-economic Development Through The 'Big Four'. 8) Gardner, D., Lockwood, K., Pienaar, J. and M. Maina (2019). Assessing Kenya's Affordable Housing Market, Centre for Affordable Housing Finance in Africa. 9) Mbabazi, E. (2020). 'Low-Income Kenyans to Get Mortgages at 7% from September', The Kenyan Wallstreet. https://kenyanwallstreet.com/kenyans-to-get-mortgages-at-7-in-september/ 10) World Bank (2019). Country Private Sector Diagnostic - Creating Markets In Kenya: Unleashing Private Sector Dynamism to Achieve Full Potential.
IOA Sources
  • 11) Shah, S. (2019). Construction financing in Africa’s affordable housing sectors: a critical gap: Testing the assumptions in Kenya’s Affordable Housing Program. Centre for Affordable Housing Finance in Africa. http://housingfinanceafrica.org/app/uploads/Shah_Case-Study-16_Construction-Financing-FINAL.pdf 12) Republic of Kenya (2018). Third Medium Term Plan 2018 – 2022 Transforming Lives: Advancing Socio-economic Development Through The 'Big Four'. 13) Kenya National Bureau of Statistics (2020). Kenya Economic Survey 2020. https://www.knbs.or.ke/?wpdmpro=economic-survey-2020 14) Delmendo, L.C. (2019). 'Kenya’s housing market is now struggling', Global Property Guide. https://www.globalpropertyguide.com/Africa/Kenya/Price-History 15) VAAL Real Estate (2021). Cheapest Mortgage Rates in Kenya. https://vaal.co.ke/cheapest-mortgage-rates-in-kenya/ 16) World Bank (2011). Developing Kenya's Mortgage Market. https://housingfinanceafrica.org/app/uploads/Kenya_Expanding_Mortgage_FinanceSM.pdf 17) World Bank (2011). Developing Kenya's Mortgage Market. https://housingfinanceafrica.org/app/uploads/Kenya_Expanding_Mortgage_FinanceSM.pdf 18) Delmendo, L.C. (2019). 'Kenya’s housing market is now struggling', Global Property Guide. https://www.globalpropertyguide.com/Africa/Kenya/Price-History 19) Federal Reserve Bank Boston. Household debt repayment behaviour: what role do institutions play? https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/qau0803.pdf 20) World Bank database. https://data.worldbank.org/ 21) World Bank (2019). Country Private Sector Diagnostic - Creating Markets In Kenya: Unleashing Private Sector Dynamism to Achieve Full Potential. 22) International Finance Corporation (2019). Her Home - Housing Finance for Women, https://housingfinanceafrica.org/app/uploads/HousingFinanceWomen1-29-20.pdf 23) Weber, O. (2013). 'Impact measurement in microfinance: Is the measurement of the social return on investment an innovation in microfinance?' Journal of Innovation Economics and Management, 11(1). 24) Elumah, L., Bamidele, I. and Yinusa, O. (2017). Mortgage Financing And Housing Development In Nigeria. Osogbo: Department of Accounting and Finance and Business Administration. Fountain University. 25) Wills Towers Watson (2018). Kenya: Mandatory housing fund contributions announced for 2019. https://www.willistowerswatson.com/en-CH/Insights/2018/11/kenya-mandatory-housing-fund-contributions-announced 26) MMAN Advocates (2019). Regulating the Mortgage Refinance Sector in Kenya. https://www.mman.co.ke/content/regulating-mortgage-refinance-sector-kenya 27) Finance Bill 2020. National Assembly Bills. Republic of Kenya. http://www.parliament.go.ke/sites/default/files/2020-05/Finance%20Bill%2C%202020_compressed.pdf 28) KENIvest. Investment Incentives. http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives 29) International Trade Administration (2020). Kenya Affordable Housing. https://www.trade.gov/market-intelligence/kenya-affordable-housing 30) Kenya Revenue Authority. https://www.kra.go.ke/en/ngos/incentives-investors-certificate/investing-in-kenya/incentives-investors 31) VAAL Real Estate (2021). Cheapest Mortgage Rates in Kenya. https://vaal.co.ke/cheapest-mortgage-rates-in-kenya/ 32) International Trade Administration (2020). Kenya Affordable Housing. https://www.trade.gov/market-intelligence/kenya-affordable-housing 33) SDG Tracker (2021). End poverty in all its forms everywhere. https://sdg-tracker.org/no-poverty