KCB Bank Tanzania Limited has made significant strides in the Tanzanian mortgage market, increasing its outstanding mortgage book threefold to Ksh.3.81 billion from Ksh.1.33 billion as of September 2023.
This remarkable growth has catapulted KCB Bank Tanzania to the position of the second-largest mortgage lender in Tanzania, reinforcing its standing in the financial sector.
The bank’s growth in the mortgage portfolio is in line with the Bank of Tanzania’s findings, which underscore the swift expansion of the country’s housing sector.
This expansion is linked to the consistent economic growth that Tanzania has experienced, with an average GDP growth rate of 6.2 percent over the past ten years, in addition to a rapidly growing population.
“The housing sector is projected to more than double by 2050, thanks to the efforts of the government in collaboration with global non-profit organizations and foreign governments to cater to the increasing demand for affordable housing.”
The total outstanding mortgage book in Tanzania’s housing sector saw a significant growth of 13.5 percent, amounting to Ksh.37.7 billion, indicating the rising demand for home financing in the country.
KCB Bank Tanzania is currently the second-largest mortgage lender, following CRDB Bank Plc. CRDB Bank ended the period with an outstanding residential mortgage book of Ksh 12.5 billion, securing a market share of 33.3 percent, a slight decrease from 37.07 percent in September 2022.
The substantial growth in KCB Bank Tanzania’s mortgage book coincided with an exceptional financial performance by the bank.
The Tanzanian branch reported an astounding 157 percent growth in net profit, amounting to Ksh 2 billion. This accomplishment ranks KCB Bank Tanzania as the second most profitable subsidiary for KCB, after DRC Congo’s Trust Merchant Bank, which posted a net profit of Ksh 5.24 billion.
The increase in mortgage lending and strong financial results highlight KCB Bank Tanzania’s strategic positioning in the Tanzanian financial market, as it effectively caters to the changing needs of the country’s dynamic housing sector and economic environment.
Investors and stakeholders are closely monitoring the bank’s progress as it continues to play a vital role in promoting home ownership and contributing to Tanzania’s economic development.
