Old Mutual undertook research into Kenya’s mortgage loans and released a report titled “Housing Finance: Initiation of Coverage”. The report found that Kenya had high interest rates which impeded accessibility to long term funding of mortgage loans. Kenya has a housing deficit estimated at 550 000 in urban and rural areas annually. The gap can be filled through exploring other ways for housing finance such as mortgage financing, rental housing or housing microfinance for low income earners.
In recent years, Kenya has seen acceleration in the home ownership sector caused by the property boom. The property market has reportedly grown by 48.5% since December 2011. The biggest barrier has however been being able to get access to finance which thus far only a minute minority have been able to access.
The report also makes other profound findings, and can be accessed via the link.Download PDF