Real Estate sector in Kenya is set to increase its growth trajectory, thank to a move by mortgage lenders to lower their interest rates in accordance with the new Amended Banking Act 2016.
This will perhaps bring more people to this fold that has been a preserve for the rich. According to World Bank, only 10 percent of Kenyans can afford mortgage due to exorbitant interest rates.
This even as the Kenya continues to face a huge house deficit every year. The country’s urban centers face a shortage of 200,000 housing unit annually, with only 50,000 new units being constructed every year.
In a bid to solve this situation, HFC, HF Group’s banking and mortgage lending subsidiary has today announced a reduction of interest rates on both new and existing loans
Sam Waweru, HFC Managing Director said new loans will attract an interest rate of 14.5 per cent and the same rate will be applied to existing loans effective 14th September 2016.
He added that affordable credit was part of the institution’s customer focused strategy, with loans having previously been priced at 15.2 per cent, a move that recently saw HFC named as one of cheapest lenders in the country by the Central Bank of Kenya.
Waweru reiterated the bank’s commitment to serving its customers and launching new products targeting new market segments.
HFC has embarked on an expansion strategy that it expects to see it become a top tier bank by 2020. The lender has increased its branch network to 25 as at end of August 2016.