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Embattled Absa Bank Kenya has launched an 8.9 percent off plan mortgage product, even as the lender continues to face scrutiny over fraud related complaints, customer protection concerns and past questions around internal controls.The new facility targets buyers purchasing units in approved off plan housing projects and offers financing of up to 105 percent for qualifying customers, with the product backed by the Kenya Mortgage Refinance Company, which provides long term funding to banks for affordable housing loans.The launch comes against the backdrop of recent Senate scrutiny over cases in which retirees allegedly lost pension lump sum payments shortly after the money was deposited into Absa accounts.Lawmakers have previously demanded information on fraud related cases involving funds held in Absa accounts from 2022, including measures the bank has taken to address possible system lapses and protect customers from unauthorised access to their funds.Absa has also faced earlier regulatory and legal questions, including action by the Central Bank of Kenya over weaknesses linked to foreign exchange transactions and a court award against the lender in a case involving the violation of a former employee’s privacy during an internal investigation.The 8.9 percent mortgage product is part of efforts by lenders to expand access to housing finance, but Absa’s push into long term off plan lending is likely to attract scrutiny over the strength of its controls, given that such products require buyers to commit funds before completion of housing units.The bank says the facility is meant to support home ownership by lowering the cost of mortgage financing, while the wider market will be watching how the lender balances growth in housing finance with stronger governance, fraud prevention and customer protection safeguards.GOT A HOT STORY? EMAIL: redpeppertips@gmail.com WITH AS MUCH EVIDENCE AS POSSIBLE.SOURCE PROTECTION/CONFIDENTIALITY IS OUR NO.1 PRIORITY.About Post Author
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