Building The Financial Framework For A Sustainable Built Environment

In Africa, a house is more than a roof over one’s head. It is a symbol of dignity, a vessel of intergenerational wealth, and a cornerstone of economic stability. In the Kenyan context, where the housing deficit stands at over 2 million units, the urgency to address this challenge is not just a matter of infrastructure, it is a moral and economic imperative.

For low-income earners, homeownership remains a distant dream. High mortgage costs, limited access to financing, and informal incomes have locked millions out of the property market. But this is not just statistics. It is a call to action. Financial institutions must evolve from passive lenders to active architects of inclusive growth. The housing crisis presents a rare opportunity to reimagine real estate financing, not as a transactional product, but as a transformative tool for social equity and climate resilience.

At Absa Bank, we believe housing is a foundation for safety, economic security, and community development. That’s why our approach goes beyond lending. We are building ecosystems, structuring capital, managing risk, and empowering end-users. Our commitment to affordable housing is not just about numbers; it’s about stories. It’s about the single mother in Nairobi who dreams of a secure future for her children. It’s about a young graduate in Kisumu who wants to invest in his first home. It’s about the millions of Africans who deserve a dignified place to call their own.

The economics of going green are equally compelling. Green homes can reduce water and energy bills by up to 57% and 45%, respectively, often recouping retrofit costs within a year. These savings are not just financial; they are environmentally friendly. Climate-resilient housing creates healthier living spaces, lowers operating costs, and shields families from the growing threats of climate change. In a continent already grappling with extreme weather events, building sustainably is no longer optional, it is essential.

Unlocking this potential requires bold thinking. We must address demand-side barriers such as awareness, access, and affordability, while tackling supply-side challenges like capital, cash flow, and policy frameworks. That’s why Absa Bank has committed KES 4 billion to support affordable housing loans for onward lending to the retail segment. This is not just a financial pledge, it is a strategic investment in Kenya’s future.

Our partnerships with the National Housing Corporation (NHC) and Kenya Mortgage Refinance Company (KMRC) are designed to create ripple effects across the value chain. KMRC-backed financing offers fixed-rate mortgages, mitigating the risk of unpredictable interest rates and making homeownership more accessible to everyday Kenyans. These collaborations are proof that when public and private sectors align, transformative change is possible.

This vision was reinforced at the recent East Africa Property Investment (EAPI) Summit and the inaugural IHS Affordable Housing Conference in Kenya. These platforms are vital for shaping policy, fostering innovation, and embedding gender-responsive and youth-inclusive frameworks in housing provision. They remind us that housing is not just about bricks and mortar, it is about people, possibilities, and progress.

Our Pan-African experience informs our strategy. In South Africa, Absa’s Commercial Property Finance team has partnered with IHS to make affordable housing an investable asset class. This model is now being adapted to the Kenyan context, proving that scalable, inclusive, and sustainable financial ecosystems can unlock homeownership for millions across the continent.

Despite recent macroeconomic headwinds, the East African property market remains a beacon of opportunity. It is an engine for job creation, infrastructure development, and improved living standards. But to fully harness its potential, we must rethink how we finance, build, and sustain housing. We must combine market expertise with innovative financial models. We must see housing not just as shelter, but as a strategic lever for inclusive development.

At Absa, we see your story. We see your aspirations. And we see housing as a platform to help you achieve them. Our role is not just to finance homes; it is to co-create the future. By embedding sustainability into our operations and aligning our capital with purpose, we are helping build the Africa we all want to live in.

This is not just a Kenyan story. It is a continental movement. If we get the financing architecture right, we can deliver not just homes, but hope. We can build cities that are both livable and investable. We can create communities that thrive. And we can ensure that every African, regardless of income, gender, or age, has a fair shot at owning a piece of the future.

Because in the end, housing is not just about where we live. It’s about how we live. And at Absa Bank, we are committed to making that life more secure, more sustainable, and more inclusive, one home at a time.

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Zaharaa Khanbhai is the Commercial Property Finance East Africa Director