“Interest rate cuts are increasingly attracting groups to seek SACCO loans for construction of houses, especially in rural areas, according to real-estate players. SACCOs have dropped rates to keep up with the banks, which have also largely kept off giving loans.”
“Residential plots also remain an attractive security to banks that are readily willing to finance house construction as opposed to funding business ventures. We are keen on cashing in on this growing interest among Kenyans on affordable loans to provide them with affordable housing for the low-end market,” he said.
Last year, President Uhuru Kenyatta signed into law the Bill capping interest rate at 4 per cent above the Central Bank Rate which currently stands at 10.5 per cent. The president said banks should compete for customers with lower rates saying this would make credit accessible to many.