Higher interest rates, rising inflation dampen housing market momentum

Kenya Bankers Association Chief Executive Habil Olaka (left) and Director of research and policy Jared Osoro during the release of housing price index in Nairobi yesterday. [PHOTO:WILBERFORCE OKWIRI/STANDARD]

House prices in Kenya increased marginally by 0.2 per cent in the last three months from 2.75 the previous quarter due to a rise in interest rates and inflation, according to Kenya Bankers Association (KBA).

In its quarterly Housing Price Index (HPI), this softening signals stabilisation of overall house prices in line with the supply-demand dynamics that were influenced by effects of a slowdown in economic growth and emerging macroeconomic instability - rising inflation and weakening exchange rate.