Outstanding Mortgage Loans In Kenya Up By 5.7%

The value of mortgage loan assets outstanding increased by 5.7 percent from 224.9 billion shillings in December 2018 to 237.7 billion shillings in December 2019 attributed to an increased appetite for homeownership.

Approximately 76.4 percent of lending to the mortgage market was by 6 institutions which included, one medium-sized bank (16.9 percent) and five banks from the large peer group (59.5 percent) as compared to one medium-sized bank (15.0 percent) and five banks from the large peer group (61.1 percent) in December 2018.

The outstanding value of non-performing mortgages decreased from 38.1 billion shillings in December 2018 to 31.0 billion shillings in December 2019 due to an increase in the number of loan repayments.

The mortgage non-performing loans (NPLs) to gross mortgage loans decreased to 13.0 percent in December 2019 compared to 16.9 percent in December 2018.

There were 27,993 mortgage loan accounts in the market in December 2019 an increase of 6.9 percent from 26,504 in December 2018.

The number of institutions offering mortgages to customers was 31 in 2019 as compared to 32 in 2018. One bank in the small peer group stopped offering mortgage loans in 2019.

The average loan maturity was 11.2 years with a minimum of 5 years and a maximum of 20 years in 2019 as compared to the average loan maturity of 10.6 years with a minimum of 4 years and a maximum of 22 years in 2018.