Why Kenya mortgage market is not growing

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The government's plan to reduce mortgage rates to as low as Sh10,000 a month is a step in the right direction. FILE PHOTO | SHUTTERSTOCK

The Kenyan dream of home ownership through mortgage loans has been thrown into a whirlwind after financial institutions began announcing new risk-based interest rates pricing formulas making the loans more expensive, outpricing the intended market.

Last week Equity Bank surprised the market by revising their interest rates for individual loans to 18 percent from 15 percent.

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Note: The results are not exact but very close to the actual.