Retire honourably
Co-operative Bank of Kenya, in partnership with Enwealth Financial Services Limited launched a Pension-backed Mortgage loan facility for members of pension schemes. The new facility is expected to enable the over 3 million members of pension schemes in Kenya, who otherwise would have found it difficult to raise enough funds to buy a home, to qualify for a mortgage. In addition, the facility will enjoy an extended repayment period of upto 20 years, subject to the retirement age of the borrower.
The new mortgage is the first such facility in the market, and has been made possible by the recent changes to the law, specifically the Retirement Benefits (Mortgage Loans) Act, Regulations Amendment 2020 that now allows members of pension schemes to utilise up to 40% of their accrued pension benefits as down-payment to buy a home
