Mortgages fall short in solving Kenya's housing crisis

Age, in addition to income, is a critical factor that financial institutions look at when one borrows.[iStockphoto]

The  mortgage model of home ownership is increasingly being viewed as unsuitable for Kenya’s economic structure, with a new report describing it as more of a wealth accumulation strategy than a solution to the country’s housing deficit.

A report by Financial Sector Deepening Kenya notes that although the Kenya Mortgage Refinance Company has made efforts to expand the mortgage market, affordability remains a major challenge.