Mortgage firm calls for inclusion in housing sector
24 January 2014, 11:42
Nairobi - The Mortgage Company has warned that the housing market in the country would continue to be a preserve of the elite if banks continue to hold on to high mortgage rates.
Caroline Kariuki, the Managing Director of The Mortgage Company, said that home ownership in Kenya was a preserve for the rich.
“The financial industry sadly, has made far fewer strides. In the last year, we have seen the very first initiatives to offer mortgage promotional offers,” she said.
She said that the promises of narrowing spreads from mainstream mortgage lenders after the uncertainty of last year’s election were yet to bear fruit in the fourth quarter of last year.
Kariuki was speaking at the launch of the fourth quarter report of The Mortgage Report.
She said that mortgages were stable in the fourth quarter with only 2 2000 mortgages being sold.
This was however a drop from the previous quarter which had seen a rise on the expiry of promotional offers from CFC Stanbic and Barclays Bank.
“The Standard Chartered Bank continues to offer the most competitive interest rate currently at 13.9 percent and United States Mortgages at 5.9 percent,” said the report.
Front runners in the sector, according to the report, continued to be Standard Chartered, CFC, Barclays and National and Housing Finance.
“With the Central Bank of Keya rate stable at 8.5 percent, the unusually wide spread on these bottom end rates, at around 10 percent points, reflects some lack of interest and funds for mortgage lending by these banks,” said Kariuki.
She added that they were being priced to reduce demand for homes.
– CAJ News