The recent decision by the Central Bank of Kenya to revise upwards a key credit pricing signal is bound to dampen demand and new projects in the real estate sector in the short to medium term, reversing the upbeat mood of a segment that has been battered in the past three years.
A cross-section of economists, finance and property experts have in addition warned that the current appetite for less risky government securities is bound to divert the much-needed capital from ongoing and planned development projects as financiers re-evaluate their investment priorities and portfolios.
