In a move set to reshape the region’s real estate landscape, Centum Real Estate (Centum Re) and KCB Bank have signed a strategic partnership to deliver more than 10,000 housing units across East Africa. Announced on May 5, the deal brings together one of the region’s leading property developers and a banking group with deep roots in mortgage financing, targeting first-time buyers, mid-income earners, and investors with flexible, sustainable home‑financing solutions.

Bridging the Housing Gap

East Africa faces a persistent shortfall of decent, affordable housing. Rapid urbanization—projected at more than 5 percent annually—has outpaced the delivery of new homes. In Nairobi alone, an estimated 250,000 new units are needed each year to meet demand, yet fewer than 50,000 are delivered. Kampala, Entebbe, and coastal towns such as Vipingo feel similar pressures, leaving middle‑income families resorting to informal settlements or overcrowded rentals.

By combining Centum Re’s development expertise with KCB Bank’s mortgage products, the partnership seeks to ease this crunch. It promises a spectrum of offerings: starter apartments under 1,000 square feet, family‑sized three‑ and four‑bedroom homes, and even mixed‑use developments that blend residences with retail and leisure facilities. End‑user financing will enable buyers to spread payments over 15 to 20 years, with competitive interest rates and down‑payment plans tailored to public‑ and private‑sector employees alike.

Centum Re’s Regional Footprint

A subsidiary of Centum Investment Company Plc, Centum Re has built a reputation for large‑scale, quality developments. Its portfolio spans coastal Kenya’s beachfront properties in Vipingo, the upscale Two Rivers mixed‑use precinct in Nairobi’s northern suburbs, and lakeside estates near Entebbe in Uganda. Each project underscores Centum Re’s focus on modern design, robust infrastructure, and long‑term value.

At Vipingo Ridge, homes integrate winding golf courses with eco‑friendly landscaping. Two Rivers attracts multinational tenants—including diplomatic missions and United Nations agencies—drawn by secured grounds and high‑end amenities. Meanwhile, the Entebbe development taps into rising demand from professionals working in Kampala and the airport zone, offering a blend of affordable villas and serviced apartments.

“Partnering with KCB allows us to accelerate delivery and broaden our market reach,” says Kenneth Mbae, Managing Director of Centum Real Estate. “We’re not just building units; we’re creating communities where families can grow, professionals can thrive, and investors can earn steady returns in a region poised for economic growth.”

KCB’s Mortgage Muscle

KCB Bank, part of the KCB Group with operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan, brings deep experience in home loans and project financing. Its mortgage portfolio has financed more than 25,000 homes to date, with an average tenor of 15 years. Standard terms include a 20 percent down payment and interest rates starting at 13 percent, though the bank offers bespoke packages for public‑sector workers, diaspora clients, and first‑time buyers.

Under the new agreement, KCB will extend two key services: development financing to Centum Re, ensuring uninterrupted project cash flow; and end‑user lending to homebuyers, with streamlined application processes and digital account management. Additionally, KCB’s mortgage insurance partnerships will provide reassurance to lenders and borrowers alike, reducing risk and encouraging uptake.

Caroline Wanjeri, KCB Director of Mortgage Business, highlights the deal’s social impact: “Access to decent housing underpins family stability and economic productivity. By offering flexible financing, we hope to welcome tens of thousands of middle‑income Kenyans, Ugandans, and coastal communities into homeownership.”

Aligning with National Housing Agendas

The partnership dovetails with government ambitions across East Africa. Kenya’s “Big Four” development agenda aims to deliver 500,000 affordable homes by 2027, with county governments playing a lead role in land allocation and local infrastructure. Uganda has embarked on its own affordable housing framework, incentivizing developers through tax breaks and dedicated housing funds. Tanzania’s urban centers, meanwhile, have launched public‑private partnerships to construct low‑cost units.

These national targets recognize housing’s multiplier effect: construction creates jobs in manufacturing, trades, and services; homeowners spend on utilities and maintenance; and property taxes bolster local budgets. The Centum‑KCB collaboration is poised to contribute significantly, not only by delivering thousands of homes but also by injecting billions of shillings into local economies through supplier contracts and ancillary services.

How the Financing Works

Prospective buyers will apply directly through KCB branches or via a dedicated online portal. Under the standard model:

Down Payment: 20 percent of purchase price, payable over six months.

Loan Tenor: Up to 20 years for salaried employees, with flexible terms for business owners.

Interest Rate: From 13 percent per annum, with periodic reviews tied to central bank policy rates.

Collateral Requirements: The property itself serves as security, supported by mortgage insurance.

Additional Services: Free valuation, discounted legal fees, and bundled life‑and‑loan protection cover.

On the developer side, Centum Re will tap KCB’s syndicated project‑finance facilities to fund land acquisition, earthworks, and infrastructure installation. These funds bridge the gap between pre‑sales receipts and construction milestones, allowing projects to advance without reliance on equity injections alone.

Human Stories: The Quest for a Home

For many East African families, homeownership remains a distant dream. Take the case of Sarah and Peter, a young Nairobi couple expecting their first child. Renting a modest apartment in the city’s outskirts, they pay nearly 40 percent of their combined salaries on monthly rent. With limited savings and no formal mortgage history, they have struggled to secure a home loan—until now.

“Knowing that KCB can tailor a package for two teachers like us gives hope,” says Sarah. “We won’t have to move every year or worry about rent hikes. A stable home means our child can grow up in one community, attend the same school, and have friends for life.”

Similar stories play out in Entebbe, where Uganda‑based professionals seek respite from urban congestion in planned estates. And in Mombasa’s coastal towns, retirees and hospitality workers eye serene, secure developments near beaches and marinas—amenities typically out of reach without structured financing.

Quality, Sustainability, and Community

Centum Re emphasizes lasting quality. Buildings meet international safety standards, incorporate energy‑efficient fixtures, and include water‑harvesting systems. Many developments feature communal green spaces, playgrounds, and small retail centers, reducing travel time for residents and fostering neighborhood bonds.

Local sourcing is also a priority. Cement and steel procured from regional manufacturers, brickwork handled by community masons, and landscaping plants grown in local nurseries all circulate capital within host communities. During construction, thousands of skilled and semi‑skilled workers are employed, with on‑site training programs boosting trade capabilities.

Challenges and Risk Mitigation

No large‑scale housing initiative is without challenges. Rising material costs, fluctuating foreign‑exchange rates, and evolving regulatory regimes can squeeze margins. Centum Re and KCB have therefore incorporated risk buffers: price‑escalation clauses in contracts, hedging arrangements for imported inputs, and periodic reviews of mortgage pricing tied to central bank policy signals.

Land acquisition can also spark disputes. To mitigate this, Centum Re conducts thorough title searches, community consultations, and compensation agreements where necessary. In cases where local residents hold customary land rights, the developer offers relocation packages or revenue‑sharing arrangements, ensuring that projects benefit—rather than displace—neighboring communities.

A Regional Vision

While Kenya serves as the initial launch market, the partnership extends to Uganda and Tanzania. In Uganda, Centum Re has pre‑identified parcels near Kampala’s northern suburbs for phased development, each connected by improved road links and public transport. In Tanzania, feasibility studies target the fast‑growing cities of Arusha and Dar es Salaam, where young professionals and expatriates seek modern housing close to commercial hubs.

KCB’s network across East Africa simplifies cross‑border financing and remittance flows. Diaspora investors—Kenyan, Ugandan, and Tanzanian nationals living abroad—can contribute equity or secure mortgage products in local currencies, all managed through digital platforms.

Looking Ahead

The Centum Re–KCB partnership represents one of the largest coordinated housing finance efforts in East Africa to date. By marrying developer confidence with lender expertise, the deal aims not just to erect structures but to unlock generational wealth for homeowners, create stable rental markets for investors, and catalyze whole‑community development.

If successful, more than 10,000 families will move into homes built under this collaboration by 2030. Thousands of direct and indirect jobs will be created in construction, materials supply, and professional services. And the ripple effects—new schools, clinics, shops, and transport links—could transform entire towns.

“This is more than bricks and mortar,” reflects Mbae. “It’s about giving people the security and dignity of a place to call home. When a family settles into their own front door for the first time, they’re not just buyers—they’re citizens making a long‑term commitment to the future of East Africa.”

As marching orders go, it is perhaps the boldest yet in a region where housing demand has long outstripped supply. Through this partnership, Centum Re and KCB Bank are betting that, with the right financial tools and development vision, the dream of homeownership can become reality for thousands across East Africa.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd May, 2025