Developing financial framework for a sustainable built environment
Opinion
By
Zaharaa Khanbhai
| Nov 14, 2025
In Africa, a house is more than a roof over one’s head. It is a symbol of dignity, a vessel of intergenerational wealth and a cornerstone of economic stability.
In the Kenyan context, where the housing deficit stands at over two million units, the urgency to address this challenge is not just a matter of infrastructure, it is a moral and economic imperative.
For low-income earners, home ownership remains a distant dream. High mortgage costs, limited access to financing and informal incomes have locked millions out of the property market.
But this is not just statistics. It is a call to action. Financial institutions must evolve from passive lenders to active architects of inclusive growth.
The housing crisis presents a rare opportunity to reimagine real estate financing, not as a transactional product, but as a transformative tool for social equity and climate resilience.
Housing is a foundation for safety, economic security and community development. That’s why our approach goes beyond lending.
We are building ecosystems, structuring capital, managing risks and empowering end-users.
Our commitment to affordable housing is not just about numbers; it’s about stories. It’s about a single mother in Nairobi who dreams of a secure future for her children.
It’s about a young graduate in Kisumu who wants to invest in his first home. It’s about the millions of Africans who deserve a dignified place to call their own.
The economics of going green are equally compelling. Green homes can reduce water and energy bills by up to 57 per cent and 45 per cent, respectively, often recouping retrofit costs within a year. These savings are not just financial; they are environmentally friendly.
Climate-resilient housing creates healthier living spaces, lowers operating costs and shields families from the growing threats of climate change. In a continent already grappling with extreme weather events, building sustainably is no longer optional, it is essential.
Unlocking this potential requires bold thinking. We must address demand-side barriers such as awareness, access, and affordability, while tackling supply-side challenges like capital, cash flow, and policy frameworks.
That’s why Absa Bank has committed Sh4 billion to support affordable housing loans for onward lending to the retail segment. This is not just a financial pledge, it is a strategic investment in Kenya’s future.
This initiative, in partnerships with the National Housing Corporation (NHC) and Kenya Mortgage Refinance Company (KMRC) is vital for shaping policy, fostering innovation and embedding gender-responsive and youth-inclusive frameworks in housing provision.
They remind us that housing is not just about bricks and mortar, it is about people, possibilities, and progress.
Despite recent macroeconomic headwinds, the East African property market remains a beacon of opportunity.
It is an engine for job creation, infrastructure development and improved living standards, and also to fully harness its potential, we must rethink how we finance, build and sustain housing.
We must combine market expertise with innovative financial models. We must see housing not just as shelter, but as a strategic lever for inclusive development.
By embedding sustainability into our operations and aligning our capital with purpose, we are helping build the Africa we all want to live in.
This is not just a Kenyan story. It is a continental movement. If we get the financing architecture right, we can deliver not just homes, but hope. We can build cities that are both livable and investable. We can create communities that thrive.
And we can ensure that every African, regardless of income, gender, or age, has a fair shot at owning a piece of the future.
Because in the end, housing is not just about where we live. It’s about how we live.
The writer is the Commercial Property Finance East Africa Director at Absa Bank