Kenyan banks have averagely cut mortgage maturity by more than a year to 10.9 years, but increased interest rates, handing consumers a double blow in their dream to own homes.<\/p>\r\n
According to a recent Banking Supervision report from the Central Bank of Kenya (CBK) banks increased interest rates on home loans from 11.3% in 2021 to 12.3% last year but cut the loan maturity from 12 years to 10.9 years.<\/p>\r\n
\u201cThe average interest rate charged on mortgages in 2022 was 12.3 percent and it ranged from 8.2 percent to 17 percent compared to an average of 11.3 percent with a range of 7.1 percent to 15 percent in 2021,\u201d said the CBK.<\/p>\r\n
An analysis carried out by Business Daily attributes the increased interest rates on home loans to\u00a0a decision by the apex bank to raise basis points, piling pressure on potential homeowners.<\/p>\r\n
The double blow for consumers coincided with a spike in the number of non-performing mortgages in the banking sector, rising by the sharpest margin in five years to Sh37.8 billion, translating to a 33.6 percent jump compared to the Sh28.3 billion in the previous year.<\/p>\r\n
Data from the CBK showed KCB, the largest mortgage lender by market share, reported the sharpest increase in bad home loans, hitting Sh14.6 billion in 2022.<\/p>\r\n
This accounted for 50.6 percent of the total Non-Perfoming Loans (NPLs) in tier-one banks from Sh8.9 billion in 2021.<\/p>\r\n
Bad loans from nine large banks, including KCB, Absa and other listed lenders, accounted for 76.3 percent of the total NPLs in 2022 from 65.8 percent in 2021.<\/p>\r\n
article source: Business Daily Kenya<\/em>\u00a0(https:\/\/www.businessdailyafrica.com\/bd\/markets\/banks-cut-mortgage-terms-by-a-year-raise-interest-on-defaults\u20134243578)<\/p>\r\n","protected":false},"excerpt":{"rendered":" Kenyan banks have averagely cut mortgage maturity by more than a year to 10.9 years, but increased interest rates, handing consumers a double blow in their dream to own homes. According to a recent Banking Supervision report from the Central Bank of Kenya (CBK) banks increased interest rates on home loans from 11.3% in 2021 […]<\/p>\n","protected":false},"author":1,"featured_media":6748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6,7,9],"_links":{"self":[{"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/posts\/46"}],"collection":[{"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/comments?post=46"}],"version-history":[{"count":1,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/posts\/46\/revisions"}],"predecessor-version":[{"id":6866,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/posts\/46\/revisions\/6866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/media\/6748"}],"wp:attachment":[{"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/media?parent=46"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/categories?post=46"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fpl.urbankreative.com\/2\/wp-json\/wp\/v2\/tags?post=46"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}