ABSA Bank has reaffirmed its commitment to supporting Kenya’s affordable housing agenda by investing in sustainable finance solutions and forging public-private partnerships.
The bank gave the assurance at the inaugural International Housing Solutions (HIS) Affordable Housing Conference held in a Nairobi hotel Thursday.
The conference brought together leaders from government, banking, development agencies, and the real estate sector to explore practical and scalable solutions for inclusive housing across Kenya and the African continent.
Speaking during the event, Zaharaa Khanbhai, the Director for Commercial Property Finance at ABSA East Africa, described housing as a key driver of dignity, economic empowerment, and long-term national competitiveness.
She noted that the bank’s participation was not just a sponsorship gesture but a strategic response to Kenya’s growing demand for decent, affordable housing.
“A home is more than just a structure; it is the foundation of security, opportunity, and economic empowerment,” explained Khanbhai, noting that Kenya faces a housing deficit of over two million units, with demand increasing by at least 250,000 units annually.
Further, Khanbhai applauded the Kenyan government for laying a strong policy framework through its affordable housing programme and urged the private sector to take the lead in scaling up delivery.
“Government has done the heavy lifting on policy. Now it’s the private sector’s turn to align, invest, and deliver. Affordable housing is not just a moral imperative; it is economically sound, and the time to act is now,” she urged.
Consequently, the director revealed that ABSA has already invested over USD 170 million in real estate projects across the region and has earmarked Sh4 billion for onward lending to the retail housing segment in Kenya, representing a 20 percent market share.
In addition, Khanbhai emphasized that the future of housing in Kenya lies in collaborative effort, innovative financing, and accountable partnerships stating, “Let us not waste the momentum of forums like this. Let’s turn conversations into action and deliver dignified, accessible homes that improve lives and strengthen communities.”
Concurrently, Head of FIC Research at Absa Group, Jeff Gable, provided an economic overview of global and regional trends shaping investment in the housing sector and warned that economic volatility driven by geopolitical shifts, fluctuating interest rates, and global trade tensions continues to complicate long-term financial planning, particularly for capital-intensive sectors like real estate.
“We live in a world where even the best analysts cannot agree on where oil prices or U.S. interest rates will be in a year, and that level of uncertainty challenges long-term investment decisions,” noted Gable.
Despite these global headwinds, he praised Kenya’s consistent economic performance, citing an average GDP growth of nearly five percent over the past decade.
Gable noted, however, that access to private sector credit remains constrained, primarily due to high lending rates and increased government borrowing.
“Lending rates remain significantly above the Central Bank Rate, which has constrained access to affordable credit. While we expect some easing by the end of the year, structural reforms are still needed to unlock private sector financing,” he explained.
Further, Gable encouraged developers and investors to explore emerging counties such as Lamu, Nakuru, and Kiambu, which he insisted are experiencing strong population and economic growth.
“If housing is about people, then go where the people are going. These are the regions to watch for future development,” he added.
With institutions like ABSA leading the way, the call is clear: housing must no longer be a promise but a shared commitment and therefore stakeholders must collaborate to ensure more Kenyans gain access to dignified, sustainable, and affordable homes.
By Amina Bakari and Wendy Sheilla
