• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Affordable housing to lift mortgages sector : The Standard

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

The number of Kenyans seeking to buy homes with bank loans is expected to triple over the next three years.
Kenya Bankers Association (KBA) said they estimate mortgages to rise to around 66,000 from the current 26,000 due to interventions by the government to create the Kenya Mortgage Refinancing Company and the market adjusting to supply affordable houses.
According to KBA’s Housing Price Index for the first quarter, 62.62 per cent of the houses currently being built are apartments, but this is expected to change as the government pushes its agenda to put up half a million houses.
“Apartments (segment) maintained their dominance in the housing market, accounting for relatively high share of sold units at 62.62 per cent, which is a structural feature that would potentially change with the implementation of the affordable housing programme of the Big Four agenda,” said KBA director of research and policy, Jared Osoro.
Kenya has only 26,187 mortgages worth Sh223 billion, which is a mere 2.7 per cent of the gross domestic product, compared to South Africa whose mortgage market makes up 31 per cent of their GDP.
Banks say Kenyans do not save, so lenders depend on borrowed money to fund mortgages and hence the high cost and short duration.
They also claim that without a clean asset register, they factor in additional legal costs to list a charge in case of default.
Kenya Mortgage Refinancing Company – which has over Sh35 billion seed capital from the World Bank and Africa Development Bank – is set to offer bulk funding to banks who will then be able to give loans of up to Sh4 million.
The loans are to be extended at fixed rates to borrowers, with a monthly income of not more than Sh150,000.
While the house prices are also expected to change, KBA says it may not be as drastic, since the segment being targeted by the state for intervention is entirely a new one which will create more buyers, but not necessarily divert current buyers from the homes being provided by the market.
“This will be a creation of a market where none had existed, leading to a structural adjustment,” Mr Osoro said.
[email protected]    

Register to advertise your products & services on our classifieds website Digger.co.ke and enjoy one month subscription free of charge and 3 free ads on the Standard newspaper.

Related Topics

KBAKenya Bankers AssociationMortgageKenya Mortgage Refinancing CompanyAffordable Housing



[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

China still bets on technology in Africa

May 15, 2019

Pomp, colour as top entrepreneurs are recognised at SME awards gala

May 25, 2019

Subscribe.

Trending.

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

Co-op Bank Partners with WorldRemit to Power Seamless Diaspora Transfers in Kenya

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF