Rental income 'helping Kenyan mortgage repayments rise'
Repayment of mortgages and other property loans is on the increase on Kenya, due partially to rising values and rental incomes.Figures from the country's central bank show the third quarter of 2010 brought a 14 per cent drop in non-performing loans, while the value fell to six billion Kenyan shillings (€54.4 million), Business Daily reports.
Executive Chairman of Mentor Holdings Daniel Ojijo explained to the news source the falling cost of loans is encouraging repayments. "Loans are becoming cheaper, with some banks willing to go as low as about 11 per cent [interest]," he explained.
Caroline Kariuki, managing director of Savings and Loan Mortgages, added the introduction of credit reference bureaux has helped bring down the number of people defaulting on their loan. Housing Finance, one of Kenya's leading mortgage providers, recently launched a seven-year bond, the money from which will go towards expanding its operations, according to the Daily Nation.