Houses being constructed under the affordable housing project in Homa Bay town. [James Omoro, Standard]

The size of an average mortgage loan has grown by 25 per cent over the last decade, raising concerns about affordability for low- and middle-income earners amid the affordable housing push spearheaded by the presidency.

Data from the latest Bank Supervision Annual Report by the Central Bank of Kenya (CBK) and research from the Kenya Mortgage Refinance Company (KMRC) highlight this issue, indicating that the increased interest rates in 2023 have exacerbated the situation.

KMRC's research, which draws heavily from the CBK report, nonetheless notes significant growth in mortgage values and anticipates a stable market in 2024. This is despite a Sh3 billion increase in non-performing loans (NPLs), as detailed in the CBK report, and the high cost of borrowing due to prevailing domestic and macroeconomic conditions.

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