Chinese developers eye local financing as capital needs surge

Chinese real estate developers in Kenya are increasingly seeking stronger partnerships with local banks, to fund most of their projects.

The move is attributed to rising capital requirements, regulatory shifts and expanding project sizes that push demand for more predictable domestic financing.

This could signal a change from reliance on China Exim Bank, which has been the main financier of most of the Chinese projects in Kenya and the continent at large.

The support includes various financial products like buyer’s credits and concessional loans, helping to drive economic cooperation and projects related to the Belt and Road Initiative (BRI).

Chinese Developers Association Vice President Zhirui Liu reveals that as Chinese developers deepen their presence in the market, local financial institutions have become central to navigating land purchases, project funding and international transactions.

“Over the years, Chinese developers have become an important part of Kenya’s real estate landscape. Throughout this journey, they need a trusted partner, offering timely and professional support in land acquisition, project financing, corporate banking and international settlement services,” Liu said.

Several companies, including Erdemann Property Ltd, which owns Great Wall Apartments in Athi River, Henbon, which has developed Diamond Bay Suites in Nairobi, among others, have established themselves in the real estate sector in the country

The sentiment emerged during a networking dinner convened by the Chinese Developers Association in Kenya to discuss financing, regulatory trends and future investment priorities.

Equity Bank Kenya Managing Director Moses Nyabanda told the developers that the lender is seeing heightened demand for structured project financing and end-to-end support.

“Our focus is to provide seamless project support, from land acquisition and construction finance to end-buyer mortgages and scheme financing,” Nyabanda said.

He added that developers are also seeking broader risk covers.“We offer comprehensive insurance solutions including fire, Work Injury Benefits Act (WIBA), medical, motor and goods-in-transit to support project continuity,” he added.

Chinese developers have expanded from small residential units to large mixed-use communities, but many still face hurdles, including complex land acquisition processes, evolving compliance requirements and market-driven funding delays.

Local banks, they said, are becoming more relevant as global capital flows tighten and demand for sustainable, professionally structured financing grows.

Developers at the forum outlined priority areas for deeper collaboration that result in faster financing turnaround, tailored mortgage products to spur uptake among middle-income buyers and enhanced cross-border banking for firms operating between China and Kenya.

They also called for more industry forums to address sustainability standards and shifting market conditions.

Nyabanda encouraged direct feedback. “Tell us what is working, where we must improve and what new opportunities you see. Your feedback will shape how we serve you better,” he noted.

Looking ahead, the association outlined several priority areas for partnership, including faster financing processes to accelerate project approvals and disbursements, as well as financial innovation, including tailored mortgage solutions and co-investment models.

They also said they are keen on enhanced cross-border services for developers operating between China and Kenya, as well as expressed willingness to strengthen knowledge sharing through industry forums and training to promote sustainable development.