Report: Kenya safe from likely housing market crash

Gichugu Affordable Housing Programme, in Kirinyaga County  which civil works were completed in May but Kenya Power expected to connect it with electricity to allow occupation. [Boniface Gikandi/Standard]

Kenya’s property market is safe from a possible housing bubble due to the cash-based nature of transactions in the real estate sector, where just two per cent of units are bought through mortgage.

A housing bubble is a run-up in home prices fueled by demand, speculation, and exuberance that bursts when demand falls as supply increases.