This archive report was first published on 3 October 2019.
On September 29, 2019, at the Own A Home Expo held at KICC, real estate players urged the government to reduce interest rates to single digits to facilitate home ownership through mortgage.
The players argued that high interest rates make it difficult for many Kenyans to afford mortgages. Currently, the maximum interest rate a bank can charge is 13 per cent, introduced by the government in 2016.
"For us to have more people sheltered, the interest rates must still come down because currently, even something like Sh600,000 cannot get you a house in Kenya. Make it easy to access funding and bring down interest rates and the cost of construction," said Nelly Mbugua, the chairperson of the Estate Agents Registration Board.
Steve Muthuo, an architect and developer, added that home buyers pay more than the current interest rate of 13 per cent when buying a house, due to other expenses such as stamp duty, legal fees, and insurance. He urged industry players to regulate themselves to prevent quacks.
Robert Kibaara, Housing Finance Group CEO, emphasized the need for affordable housing, where there is still a huge market compared to the high-end market. He suggested a reasonable pricing model to address the housing shortage in Kenya.
Experts also called on authorities to implement existing laws to stem the collapse of buildings, highlighting the need for safety in houses.
