MMC Africa Law, Barclays, Nairobi Hospital partner to unveil staff mortgage scheme

NAIROBI…The Nairobi Hospital has partnered with commercial law firm MMC Africa Law and Barclays Bank of Kenya to provide an affordable mortgage scheme to the hospital’s members of staff. The mortgage scheme which targets over 600 hundred of the hospital’s employees will see them enjoy a 6 percent interest rate for any mortgage worth 10 million shillings and below, which is 5.1 percent lower than the current 14 percent market rate.

The scheme will see those who have worked at the Nairobi Hospital for more than two years become eligible to access the subsidized loans. Other factors that will be considered are satisfactory work performance and the ability to pay, as well as the current legal requirement to retain at least a third of income loan-free.

‘’This is a laudable move towards enhancing homeownership in light of the government’s initiative to provide affordable housing,’’ said Edward Muriu, MMC Africa Law Team Leader during the function held at the hospital’s auditorium.

The scheme will also see the staffers borrow up to three times their gross income. However, those who may move to a different hospital will have to renegotiate the rates afresh.

According to Barclays’ director of customer network Ann Kinuthia, the terms will still remain the same even after Barclays rebrands to ABSA which is bound to happen by June 2020.

The loans will take a maximum of 25 years subject to the retirement age of the borrower, with the bank financing up to 90 percent of the project cost.