‘House prices should be right’

Kiyai: There is urgent need for automation of land registries and faster transfer of titles. (PHOTO: WILBERFORCE OKWIRI/STANDARD)

How can commercial banks in Kenya like Consolidated Bank encourage mortgage uptake despite the recent increase of Central Bank’s lending rates?

At a time when interest rates are rising, it is important for banks to underwrite cautiously and balance uptake to ensure that even as we attempt to increase mortgage uptake, borrowers are not struggling to repay. That notwithstanding, despite the increase in the Kenya Bankers Reference Rate by 1.33 per cent, most banks have not significantly increased interest rates for mortgages.