Mortgage rates still an issue to home owners in Kenya

Even against sharp rise in mortgage lending, the edgy interest charges have remained a nightmare for the new homeowners.

The mortgage financing has been the best option for many coastal region low and middle-income earners when buying a house. However, with now the surge in interest rates, this option is slowly losing ground.

According to CBK data, building and construction picked up last year, driven by increased demand for residential housing following stable interest rates. However, the trend is quickly changing, fuelled by a gradual surge in mortgage interest changes.

A Mombasa-based property constructor reckons that it will take low-income earner years of hard work to build or own house. But with the daily increment of rents charges, many view mortgage financing as an ideal option despite the interest burden.

But Miritini residents in Mombasa have something to smile about following a new housing project embarked on by Mombasa Water Products limited (MWPL).

Through partnership with Housing Finance that has agreed to offer development financing, MWPL’s offers 37-acre plot for development.

Miritini is an industrial area, but is slowly gaining popular as an ideal residential area. A new estate dubbed Airport View is set to change the lives of many people residing in the area.

Houses in Miritini, in the busy industrial area, are mainly Swahili typed houses, built in coral blocks or clay that has been home to the area’s labourers and low income earners.

But the now changing landscape that has attracted new developments is likely to attract middle and upper income earners.

MWPL founder, Mr Joseph Mbugua Gichanga says the 37-acre plot in Miritini offers residents an opportunity to build and own houses of their choices and design.

Gichanga, explained the plot can accommodate 130 houses.

He contends that the proposed estate would also have a mosque, church, nursery school, a hospital and a police post.

He, however, adds that the land for the mosque, Church and a police post would be allocated at no cost.

Housing Finance Mombasa branch Manager, Mr David Maveke, said the bank’s role in the project would be to facilitate loans to interested parties.