Kenya has a rapidly growing real estate and housing finance sector. However, as the mortgage market is not yet able to reach the entire population that could afford a mortgage. Most households still funds their homes independently, through savings or non-mortgage loans. The house prices are rising day by day.
After political instability and economic slowdown, Kenya has gradually emerged as one of the most developed countries in Africa and one of the fastest growing economies in the world.
The lowest recorded interest rate on a mortgage in Kenya is 17.1 percent, as of September 2016, and requires a minimum deposit of 10 percent. There are currently 24,458 mortgages in the country, with an average mortgage size of US $ 81,717.
The cheapest newly constructed home by a CAHF registered developer is US $ 15,753, for a unit of 30 square meters. Cement prices are below the continental average, at US $ 7.29 for a 50-kilogram bag.
With an urbanization rate of 4.28 percent, the demand for affordable housing will remain strong, also for affordable rental.
Real Estate Markets
House prices in Kenya have generally increased significantly in 2015 and in the first two quarters of 2016. This is the result of improved confident of international investors’ and security concerns disappear.
The gradual opening of new geographic areas for subdivision projects through the expansion of physical infrastructure, particularly transportation.
House Price Offer in Market
Statistics on housing investment indicate that there is growing interest in this sector. In 2015, about 257.3 billion KES (2.5 billion USD) was injected into the housing sector nationwide.
Nairobi alone received more than 58.4 billion KES (575 million USD), which represents approximately 7479 new housing units. The government remains a major player and provider of housing in Kenya.
Kenya will launch a mortgage refinancing company to increase housing supply in the country and facilitate local banks’ access to long-term financing for real estate loans.