Kenya Bankers Association to create a housing index
The Kenya Bankers Association (KBA) is looking to set up a housing index to measure and track the price changes in Kenya's booming housing market.The Kenya Bankers Association (KBA) is looking to set up a housing index to measure and track the price changes in Kenya's booming housing market.
It made this announcement while presenting the findings of its new research into how the housing sector can better function in the national economy and on how to better gauge the risk of lending to the agriculture sector.
The KBA said a model for a housing index will fill a gaping void where "wild speculation"
been the norm in determining values of houses in Kenya, The Star reports.
A standardised housing index could also be an important reference tool for policy makers and lobbyists who can point
to reasons why either better roads, security and amenities should be installed in an area to spur housing development, the association added.
The index will make use of data gathered from KBA member banks to capture the valuations of properties and will include features such as amenities, security, size…etc. It should also tell the user why prices are changing.
Before it can be finalised, the model will be subjected to appraisal from economists, bankers, and developers. It is expected to be released on a quarterly basis, likely starting in
third quarter of the year, the KBA said.