Let's talk mortgages in Kenya


Let's talk mortgages in Kenya.
Let's talk mortgages in Kenya. Kenyan's are increasingly avoiding them, and for good reason. Let's look at the numbers, here's what you need to know.
80% of the mortgage market is controlled by KCB, Stanbic, StanChart, Absa, Co-op, Equity,NCBA and HF Bank The average Kenyan with a mortgage has a Sh9.2 million mortgage repayable in 12 years in 2021. We will use this below

About 88 percent of the mortgage loans were on variable interest rates. In 2021, this meant 7.1% to 15% interest. Given its variable, banks can increase interest, therefore: In 2022, this means 11.5% and 18.18% interest.

The most expensive bank for mortgages is Middle East Bank where a Sh9.2 million loan expected to repay Sh24.9 million in 12 years. The least expensive bank for mortgages is Bank of India where a Sh9.2 million loan expected to repay Sh17.5 million in 12 years.
KCB,has the most mortgage accounts, and charges a minimum interest of 13%, with the borrower paying back about Sh20.74 million. Co-op Bank, charges an interest of 15.6 %, with the borrower paying back about Sh20.53 million. At Equity Bank you'd pay Sh19.5 million for the same.

Repayment for a Sh9.2 million mortgage averages: Stanbic — Sh19.19 million StanChart — Sh19.08 million NCBA — Sh18.82 million Housing Finance (HF) —Sh18.71 million Absa — Sh18.31 million
Stanbic and NCBA, offer up to 105% mortgage, which covers fees and commissions charged by external parties such as lawyers and surveyors while Other banks need customers to have a deposit and offer only 90% of the property value.
At monthly payments of between Sh118,065 and Sh150,137, the data shows that very few people dependent on salaries can tap mortgages. Many would require to be either in good performing businesses or running a mix of employment and business to keep up with monthly payments.