National Bank of Kenya (NBK) and Centum Real Estate have signed a strategic partnership to offer financing solutions for home purchases, land acquisition and construction, in a move the firms say is intended to broaden access to property ownership for Kenyans. The Memorandum of Understanding (MoU) was signed in Kilifi County, according to a joint media release.

The partnership introduces what the companies described as tailored financing options, including mortgages and construction loans, with repayment structured around individual customer circumstances. NBK and Centum Real Estate said the model is designed to shift customers’ focus from a lump-sum purchase price to what they can afford on a monthly basis, as lenders and developers look for new ways to address affordability constraints in Kenya’s housing market.

Kenya continues to face a housing deficit, while tighter household budgets and elevated borrowing costs have weighed on mortgage uptake in recent years. Against this backdrop, banks have been pursuing partnerships with developers to originate mortgages and project-linked financing, while developers seek to expand the buyer pool by aligning payment schedules to construction timelines and expected rental yields.

George Odhiambo, Managing Director at National Bank of Kenya, said the MoU formalises a collaboration aimed at enabling home ownership and real estate investment. “The partnership we are formalizing today represents a shared commitment to enabling home ownership, supporting investment in real estate, and providing customers with tailored financial solutions that help them achieve their aspirations,” Odhiambo said. He added that the partners plan to combine NBK’s “financial expertise and extensive customer network” with Centum’s real estate delivery capabilities.

Martin Kariuki, General Manager, Vipingo Development, framed the arrangement as a way to create more predictable financing for buyers. “A good home should be more than something people admire from a distance. It should be something they can understand, plan for, and move toward with confidence,” Kariuki said. “By connecting quality homes with a more predictable financing path, we want to help more customers see ownership as something they can realistically work toward.”

The statement also included remarks from Ralph Opara, Access Bank Regional Managing Director, East Africa and Country Managing Director, Kenya. “This MOU is not simply about financing property transactions. It reflects our commitment to leveraging Access Bank Group’s international reach, financial strength, and deep market expertise to unlock opportunities for our customers,” Opara said, adding that the partnership aims to support sustainable development and long-term economic growth.

NBK and Centum Real Estate cited an example of a studio apartment priced at KES 2.7 million, saying it can be financed through monthly repayments, which the firms said lowers the barrier to entry for first-time buyers and investors.

A key feature of the offering, according to the release, is an investor-focused structure in which buyers begin servicing their mortgage after the unit has been completed and handed over. The companies said this is intended to allow owners to generate rental income and apply proceeds toward repayments.

For Kenya’s property and banking sectors, such product structures could intensify competition for project-tied mortgages and broaden the menu of lending models beyond traditional buy-to-let and owner-occupier mortgages. However, the commercial viability will depend on delivery timelines, take-up rates, and lenders’ risk management for developments that rely on expected rental cash flows.

The companies did not disclose the targeted number of units, expected mortgage volumes, or the pricing details of the financing products. They said the partnership is intended to expand access to property investment and ownership and support the country’s economic development agenda, with implementation expected to follow the MoU signing.

National Bank of Kenya (NBK) reported a 275% increase in profit after tax to KES 1.03 billion for the first quarter ended March 31, 2026, up from KES 275.7 million a year earlier, driven by higher net interest income and a steep decline in loan loss provisions, according to a press release dated May 21, 2026.

The lender said net interest income rose to KES 2.84 billion from KES 2.4 billion in Q1 2025, attributing the increase to “disciplined asset pricing and improved funding efficiency.” Non-interest income was KES 664.3 million, which NBK said reflected performance in fees and commissions despite a competitive environment.

NBK maintained operating expenses at KES 2.1 billion in the quarter, citing cost management and operational efficiency initiatives. The most significant swing factor was credit impairment: the bank said loan loss provisions declined 92% to KES 50 million from KES 618 million in the prior-year period, which it attributed to reduced non-performing loans, improved recoveries and enhanced credit quality.

On the balance sheet, NBK said total assets increased to KES 145.3 billion, up from KES 141.1 billion in December 2025. Customer deposits stood at KES 106.7 billion, which the bank said provided a stable funding base. Net loans and advances rose to KES 57.0 billion from KES 51.0 billion in December 2025.

The results come as Kenya’s banking sector continues to contend with credit risk management, competition for low-cost deposits and a shifting interest rate environment. For NBK, the sharp decline in provisions suggests an improving risk profile, while growth in loans and advances indicates an expansion of credit to households and businesses.

NBK Managing Director George Odhiambo said the bank’s start to the year was supported by operational measures and customer activity. “We have started off the year on a strong footing, driven by customer confidence, cost management and operations efficiency initiatives,” Odhiambo said. “We are reinventing ourselves in the market to come out stronger, and I am confident that by the end of the year, we will be at a higher level.”

Odhiambo added that the lender would continue to widen its offering. “Our focus is to continue serving our customers, exploring more business opportunities and expanding our product and service offering to better serve the market,” he said.

Industry watchers typically view a combination of rising net interest income and falling impairment charges as a signal of improved asset quality and pricing discipline, but the sustainability of earnings gains often depends on how long credit costs remain low and whether loan growth is funded without increasing funding costs. NBK’s deposits level and stable operating expenses may provide support if competition for deposits intensifies across the sector.

Looking ahead, NBK said it would focus on “delivering sustainable growth” while strengthening digital capabilities and maintaining disciplined risk management. The bank also referenced ongoing “integration processes within Access Bank PLC,” reflecting its position as a subsidiary of Access Bank Plc.