Kenya's real estate sector boom has slowed down according to the latest numbers released by the Kenya National Bureau of Statistics.
According to the latest numbers released, there has been an 18.4% decline in the value if building plans approved by the Nairobi City County between January and July of the year 2017.
With so much pessimism regarding the country's political crisis after the annulment of votes in August, a host of investors have been reluctant to push through at full throttle in a bid not to lose their investments. The Banking Amendment Act of 2015 has also impacted the sector with banks reluctant to give credit to the private sector.
The Act of 2016 requires banks and financial institutions to disclose all charges and terms relating to a loan before granting it to a borrower and which requires banks and financial institutions to cap the interest rate applicable on a credit facility to a maximum of 4% above the prevailing Central Bank of Kenya base rate. The Banking (Amendment) Act 2015 also requires banks and financial institutions to pay a minimum interest rate of 70% of the prevailing Central Bank of Kenya base rate on deposits held in interest earning accounts in Kenya.