Banks Unveil Stringent Loan Measures for Landlords

  • An image of residential building at Pipeline, Nairobi County
    An image of residential building at Pipeline, Nairobi County
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  • Kenyan banks have rolled out stringent measures targeting landlords in the wake of rising cases of collapsing buildings.

    Local lenders will not be advancing loans to contractors until assured occupational safety measures have been put in place.

    The new development was announced by Nakuru County Director for Occupational Safety and Health Services (DOSH), Simba Ondimu, on November 24.

    A building in Ruaka near Fortune Club area collapses on Thursday, November 27, 2022.
    A building in Ruaka near Fortune Club area collapses on Thursday, November 27, 2022.
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    “Before getting a construction loan, banks will demand a Certificate of Registration of a building or a construction site from respective county DOSH offices,” Ondimu revealed through a press conference.

    “The new directive will decrease the risk of injuries to the public, and also reduces risk of work-related injuries and accidents,” Ondimu noted.

    Ondimu added that insurance companies will also be demanding a certificate from DOSH before they insure a building.

    “Insurance companies will not pay for worker injuries unless the industry or manufacturing plant prove they have adhered to all safety measures,” he expounded.

    The new directive from the finance institutions will make sure landlords put up buildings that adhere to all required structural and safety standards.

    Most buildings that have collapsed have been found to be substandard and not adhering to construction permit requirements.

    On November 18, Mombasa County governor Abdulswamad Sheriff Nassir halted construction of 162 buildings noting that they do not adhere to bare minimum safety standards.

    Five days later on November 23, Johnson Sakaja ordered a crackdown on all buildings to ensure they were up to standards.

    The National Construction Authority (NCA), in a report noted that three out of ten buildings in Nairobi are non-compliant and pose danger to the public.

    A collage of the building that collapsed in Tassia, Embakasi on Monday, November 7, 2022..jpg
    A collage of the building that collapsed in Tassia, Embakasi on Monday, November 7, 2022.jpg
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