NAIROBI (Reuters) – Kenyan firm Housing Finance has signed a two-year agreement with the East African Development Bank (EADB) to co-finance large housing projects around the region, it said on Tuesday.

Housing Finance, the only listed dedicated mortgage financier in east Africa’s largest economy, is barred from lending more than 25 percent of its core capital base of 3 billion shillings, which is 750 million shillings.

“We anticipate growth in our mortgage business as large projects undertaken in conjunction with EADB will increase the number of houses for home ownership by individuals,” Managing Director Frank Ireri said.

Kenya has an annual housing need of 210,000 units against a supply of 50,000 houses, according to a study by the central bank and the World Bank.

EADB’s Director General Vivian Apopo said her bank’s focus is on providing housing for the low-income end of the market and supports government efforts to provide affordable housing.

Kenya’s property sector has attracted both local and foreign investors.

© Thomson Reuters 2011 All rights reserved