Kenya: High Inflation, Weak Shilling Hurt Dreams of First-Time Home Buyers

7 September 2011

The rising inflation and a weak shilling in the past six months continue to bite into household savings, pushing dreams of first-time home buyers on hold as it becomes more difficult to raise the initial capital for home purchase. Self-build housing and mortgages are most affected as savings are hived off from household budgets by high cost of commodities.

The cost of borrowing in the country has risen as financial institutions adjust base lending rates to reflect a weakening shilling which has been fluctuating against major currencies.

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