Mortgage defaults hit Sh38bn.

[RANDY $]

Default on mortgages jumped 41 percent to Sh38 billion, pointing to widespread distress in the real estate sector as Kenya’s economy slows down and property auctions pick up.

Latest Central Bank of Kenya (CBK) data shows that mortgages recorded the highest growth in non-performing loans (NPLs) last year from Sh27.2 billion in 2017, reflecting the struggle by investors to find buyers for their houses amid dwindling returns.

Unpaid mortgages increased by Sh11.2 billion or 41.1 percent, a rise that outpaced other segments like manufacturing (19 percent), traders (4 per cent) and personal loans (six percent) in growth of default on loans, the BK said.

The mounting defaults in the property market are a reflection of the struggles that mortgage holders are undergoing in an economy that has witnessed a string of job losses in recent months across nearly all sectors as corporates intensify austerity measures to protect profits.

This has seen workers who took mortgages on the strength of their pay slips default with the slowdown in real estate hurting property developers who are finding it difficult to sell units that were built on loans.

Mortgage defaults hit Sh38bn, auctions jump

Spike in property seizures as home loans defaults rise fastest at 41 percent, according to Central Bank of Kenya data.

www.businessdailyafrica.com

 

[1881]

my pal at one blue bank here in this our "nyorobi" tells me that they are also having problems getting rid of repo'd houses and flats.
the costs associated with resale and the zero circulation is causing a lot of chieth.

 

[R_Silver]

my pal at one blue bank here in this our "nyorobi" tells me that they are also having problems getting rid of repo'd houses and flats.
the costs associated with resale and the zero circulation is causing a lot of chieth.

You should ask him how higher interest rates are now going to solve this problem...chieth ni wao

 

[Wanaruona.]

Watulize makende na bado the bubble is yet to burst.

 

[Anglututu]

Lack of sane regulation and greed of the capitalists, always swings back.
Let it continue until we are able to get affordable deals on them properties.

 

[R_Silver]

Lack of sane regulation and greed of the capitalists, always swings back.
Let it continue until we are able to get affordable deals on them properties.

I think banks/saccos that repossess properties from defaulters are required by law to sell them at above 75% of the valuation price. Given the exaggerated prices of real estate to begin with, banks will be stuck with them.

 

[zapp_brannigan]

You should ask him how higher interest rates are now going to solve this problem...chieth ni wao

Their goal to make more billions at the end of their financial year is what matters .If they still made billions when the rates were capped It means their next financial reports will have higher figures after shafting more customers.

 

[Johny walker]

Nimeona mtu akianika nguo kendo 20th floor muthaiga square.siwes ishi hapo

 

[Foxtrot]

my pal at one blue bank here in this our "nyorobi" tells me that they are also having problems getting rid of repo'd houses and flats.
the costs associated with resale and the zero circulation is causing a lot of chieth.

I have a friend at greenpark whose house was repo’d too... a few months later the bank manager called him and they negotiated new terms of payment...
Right now even getting a loan using a house / land as security is hard.

 

[Wanaruona.]

I have a friend at greenpark whose house was repo’d too... a few months later the bank manager called him and they negotiated new terms of payment...
Right now even getting a loan using a house / land as security is hard.

Huyu ndio ule alikuwa na stress juu ya auctioneers. It seems alipata a new lease of life.