Affordable housing to lift mortgages sectorThe 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. Banks say Kenyans do not save, so lenders depend on borrowed money to fund mortgages and hence the high cost and short duration. The loans are to be extended at fixed rates to borrowers, with a monthly income of not more than Sh150,000. “This will be a creation of a market where none had existed, leading to a structural adjustment,” Mr Osoro said.

Source: Standard Digital May 24, 2019 21:04 UTC