Mortgage in Kenya: Kenyans who earn less than Ksh.150,000.00 per month will begin getting home mortgages at a rate of 7% down from the current market rate of 11.5%.
The loans which will be given by Kenya Mortgage Refinance Company (KMRC), will be channeled to customers through banks, Sacco’s and other financial institutions. These institutions will obtain the money from KMRC at a rate of 5% interest rate per year and then lend it out to customers at a rate of 7% per annum.
Kenyans earning less the Ksh.150,000.00 have been locked out of Mortgage due to the high interest of almost 12%. This development, which now is a 5% drop from the current market rates, will see more Kenyans take up mortgage in the coming years.
The Kenyan government through the National treasury backs the initiative, as it is keen to see more Kenyans own homes.
“The funds will be disbursed from September 2020 to enable more Kenyans to have access to the mortgage, “said Johnstone Oltetia, the CEO, KMRC.
“The funds will be disbursed from September 2020 to enable more Kenyans to have access to the mortgage, “said Johnstone Oltetia, the CEO, KMRC.
“So far KMRC has mobilized nearly Sh. 40 billion, including Sh. 2.2 billion in equity capital, Sh. 25 billion committed by the World Bank and Sh. 10 billion from African Development Bank. It has plans to raise an extra Sh. 5 billion from the capital markets,” notes the CEO.
Aspiring home owners who earn less than Ksh.150,000.00 can now take the mortgage and own homes. This group has been locked out of the mortgage industry for years.
Those earning more that Ksh. 150,000,00 will however continue to accessing mortgage at the normal market rates.
This comes even as the economy is being ravaged by the COVID-19, which has seen an uptake of rental space and housing units. Moreover, land prices have seen a marginal drop occasioned by the effects of COVID-19.
