What is financing Kenya’s construction boom?

Some of the housing projects along Mombasa Road, Nairobi: Developers are seeking loans outside the traditional mortgage sector. Photo/DENNIS OKEYO

What you need to know:

  • Only 1.1 per cent of the top 60 per cent of income earners in Kenya have an outstanding loan to purchase a home, while only 0.6 per cent of the bottom 40 per cent of income earners have a mortgage.

About two months ago, Central Bank of Kenya governor Prof Njuguna Ndung’u sent shock waves through the property sector when he announced that the bank would conduct a survey to ascertain the source of the money behind the boom in the country’s real estate sector.

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