National Bank is building a portfolio of providers that will enable them meet the financial requirement of a growing diaspora market wishing to invest in Kenya’s real estate sector.
The bank, which will facilitate the investors’ financial transactions, is in the process of assembling service providers with the intention of cushioning the later from unscrupulous individuals.
The bank recently participated in a diaspora investment expo held in New Jersey, United States of America, where mortgage deals worth KES 1bn were sealed.
“What we managed to achieve at the Expo is to bring together credible developer and lawyers and with us as the financier so that those in the diaspora seeking to own properties back home has complete and credible package of providers,” said Executive Director for Retail and Business Banking Robert Kibaara.
Kenyans in the diaspora are developing a keen interest in areas of residential homes with many coming together to invest in commercial buildings.
However, Mr. Kibaara said they were falling prey to unscrupulous developers and even relatives in the process losing money running into hundreds of millions.
The event which happened in August this year was organised by real estate and property developer Kingspride.
It brought together 24 exhibitors drawn from real estate players, the banking sector, insurance and legal firms.
Growing remittances
Remittances from Kenyans in the Diaspora KES 10.2bn in March this year, a 16pc increase from the same period last year. Data released by the Central Bank of Kenya (CBK) indicates the 12 month cumulative remittance inflows also increased by 12.2pc from KES 101.4bn in March 2013 to KES 113.7bn in March 2014.
Most of the money sent by about half a million Kenyans living in the Diaspora is used to fund investment projects, a move that has attracted local companies, especially in the banking sector, according to the World Bank.
