National Bank of Kenya has financed the Kencom Sacco to a tune of over KES 2 billion shillings for the construction of the Runda Homes properties.
The loan comes at a time when Saccos are expected to boost their earnings and benefits to their members besides promoting savings and offering complementary savings and credit services.
The project, facilitated through the bank’s Islamic Bank Division – National Amanah, commenced in August 2013 and is scheduled to end in November 2016.
“There is a strong growth in Islamic banking in Kenya based on the reception we have seen since the launch of our Amanah segment. National Amanah is a highly profitable National Bank Segment currently accounting for a significant percentage of the bank’s balance sheet,” said Mr. Musau, National Bank’s Managing Director and Chief Executive Officer.
National Amanah is an Islamic window of the bank that offers a wide range of banking products and services that are Shari’ah compliant and available to all the Bank’s customers irrespective of their religious beliefs. It adheres to the guidance of the Shari’ah supervisory board with respect to all matters relating to the interpretation and application of Shari’ah regarding product design, transactions and investments.
“This partnership is a clear indicator that as a bank, we have not veered from our initial mandate which is to serve Kenyans. Our doors are open to all and our professionalism dictates that our customers’ despite being our market competitors shall always be accorded the highest level of service,” added Mr. Musau.
In September 2013, Kencom Sacco approached National Bank for a diminishing Musharaka Construction Mortgage to construct 113 4-bedroom maisonettes on a 20-acre piece of land in Runda area. Owing to the bank’s favorable profit rate of 14% p.a and 100% construction of the project with Kencom Sacco contributing the land, the two parties entered an agreement. The project will comprise of a shared recreational centre, nursery school, commercial centre, swimming pool, playground, 2 boreholes, man-made lake, backup generator and paved roads with street lighting.