Housing Cartels: Challenges of owning a home in Kenya

Role of Housing Sacco’s in realization of affordable homes

The Kenya housing sector is facing a deficit of houses. A situation that has provided ideal breeding ground for cartels and conmen. It is not a surprise to find a person selling virtual houses or land and end up harvesting billions of shillings from innocent buyers. Such factors have pushed housing companies to device ways of building trust in their customers to be able to survive in the real estate business

Shelter is one of the fundamental needs any human being needs on earth. Owning a house or having a place to call home however, is always an uphill task for many people.

This has not only sent millions of people in slums but also paved way for thriving of lands and house cartels and conmen who survive on fleecing innocent customers.

Real estate is all about building trust and confidence in customers, a strategy that cartels also use. Partmus Kariuki from Heri Homes has tips on how to avoid conmen

The issue of cartels is not the only reason that has made it hard for Kenyans to own homes. The high construction cost, together with the sky rocketing interest rates on mortgages are still a pulling factor as far as realization of affordable housing is concerned in the country and that is why real estate companies are moving away from the mortgage system to the equity housing model.

Despite a growth in the real estate, the mortgage market which has been dominated by big banks and wealthy folks is slowly dwindling due to the high interest rates. This has made many individuals who desire to own a house opt for already made houses.

According to statistics, inflation and political instability has affected the mortgage rates in almost all countries in the world.

 

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