Brexit’s effects on Kenya's the property market

Brexit is expected to affect all markets, and people are wondering how this will affect the Kenyan economy as well as the property market. In general, it is important to understand that such unexpected changes result in both economic and financial shifts. Usually, economic shifts happen slowly while financial shifts happen overnight and can be very drastic. GRAPHIC | NATION

What you need to know:

  • With capital flight, reduced exports and pressure on the shilling, the purchasing power of Kenyans is likely to go down, leading to lower investment in property.
  • We should all be ready for any eventuality. During the transitional period when the country’s strategic plans for further growth will be facing challenges, one of the major sectors of the Kenyan economy, real estate, will also face challenges.
  • It is undeniable that the Kenyan real estate market has been counting a lot on the inflows and investments from Kenyans in the diaspora as well as to future foreign investments. Brexit is expected to negatively affect the real estate sector.

On June 23, 2016, the history of Europe, and the world, changed drastically, marking the beginning of a new era following the UK referendum, which saw the country’s citizens vote to withdraw from  the European Union (EU). Their decision will see the creation a whole new economic environment, not just for the UK, but for the Eurozone as well as other markets around the world.

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