Stanbic Bank Kenya, a unit of Africa’s biggest lender by assets, forecasts its mortgage business in the nation to surge as the economy recovers from the pandemic and the end of presidential elections bringing political stability. High borrowing costs have kept most Kenyans away from mortgages. That’s changing as the Kenya Mortgage Refinancing Company, a state-owner financier, is lending to commercial banks at lower rates and helping create another product for lenders in East Africa’s biggest economy. Kenya Mortgage targets to disburse $79.2m to banks by the end of the year. Financing from Kenya Mortgage is helping Stanbic offer loans at 9% for affordable housing. It is also offering 13% rates for commercial property. Eight commercial lenders account for 84% of home loans valued at $2bn, according to the central bank’s annual supervision report. There are 26,723 mortgage loans in Kenya, most of which are issued with variable interest rates ranging from 7% to as high as 15%, according to the report.
SOURCE: BUSINESS DAY LIVE