Corporate News
Equity rolls out mortgage for low income earners
Equity Bank is riding on Mabati Rolling Mills (MRM) low-cost housing products to introduce home loans for low-income earners.
Posted Wednesday, November 9 2011 at 00:00
The Central Bank of Kenya (CBK) says the country has about 15,500 mortgage holders who have been lent about Sh140 billion with the average of loan being Sh6.6 billion—which is beyond the reach of most households.
Housing market
“This may be explained by the undeveloped medium-to-low income housing market or the latent demand in the high-income housing segment hat is yet to be met,” says CBK.
Home loans finance is emerging as a profit driver for Kenya’s bankers as red-hot real estate market attracts investors who previously put their money in bonds and equities market.
As a result, the market has witnessed new entrants such as Bank of Africa, Family Bank and Equity that are looking to challenge the dominance of market leaders such as KCB Group, Housing Finance and CFC Stanbic.
Rapid urbanisation, population growth and expansion of the middle class remain the main drivers of Kenya’s property market that is riding on nearly three decades of under investment in the mid-tier segment.
rotini@ke.nationmedia.com
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