MTN Rwanda employees are set to benefit from Kenya Commercial Bank Rwanda’s (KCB) mortgage facility after the two parties signed a partnership on Monday.
The Bank’s mortgage product, which was launched last month, was designed to offer home ownership with a minimum of 10 percent deposit for first time home owners, minimum 20 percent deposit for residential units under construction and 30 percent deposit for non residential commercial properties.
Maurice K. Toroitich, the Managing Director of KCB Rwanda told Business Times they are delighted to enter this partnership with MTN where KCB Rwanda will provide mortgage facilities to staff of MTN.
“The arrangement is that, MTN employees who will desire to own homes, and those having a pension scheme with the company (MTN) will utilise those funds informally in a way of a secured grantee to be able to have the mortgage loan,” Toroitich explained.
Toroitich further said that the partnership was another way of promoting the bank’s housing scheme which they launched recently.
“We believe by going into partnership with other stake holders, such as MTN who would like to provide housing to their staff, KCBR will be able to provide these facilities in a manner that is much more secure
and structured in our initial stages of offering the mortgage facility,” he added.
He explained the partnership does not require MTN to guarantee the facility but through a structured way of support, KCB sees the risk profile of the mortgages that it will provide to MTN staff as much lower and therefore will be able to provide a better pricing.
“Our partnership with KCB Rwanda has been going-on almost for two years now, this is like strengthening our partnership and this mortgage agreement is a unique agreement of its kind in Rwanda,” MTN’s Chief Executive Officer, Khaled Mikkawi said after signing the agreement.
“Now it’s time for the staff to invest this money into a productive venture which we believe it’s the right to make use of the savings after five years since we launched the programme.
“The facility will also facilitate MTN staff and encourage them in buying or building houses.”