Kenya's real estate sector in slow down

The slow down could be worrying if election tension pertains

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.

Our newsletter gives you access to a curated selection of the most important stories daily.

Welcome to the Pulse Community! We will now be sending you a daily newsletter on news, entertainment and more. Also join us across all of our other channels - we love to be connected!

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Linet Toto excited as she unveils sleek ride after 1 month in office [Photos]

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Diwali 2022: Is Monday a public holiday in Kenya?

Diwali 2022: Is Monday a public holiday in Kenya?

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Mathias Pogba brands Paul Pogba 'a so-called Muslim steeped in witchcraft' amid fetish claims about Kylian Mbappe

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Ne-Yo speaks out after wife Crystal announced end of their 8-year marriage

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job