Everyone can now borow 4 million shillings to build homes from Housing Fund

[RV Heavy Hitter!]

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Game changer for millions of Kenyans in the villages and small towns. With single digit rates, banks will be forced to cut rates too now that the Government is providing competition. If sustained for 10-20 year, mud and semi-permanent homes will be eradicated in Kenya!
https://nation.africa/kenya/business/kenyans-to-access-sh4m-loans-for-rural-housing-in-new-rules-5166192?fbclid=IwY2xjawMZK9JleHRuA2FlbQIxMABicmlkETFuZ3RpYllqN3djeVZLOEcwAR7iY_-YoMMtyc1MOB0tDVqFq2KuiNP93TIwKNnINgCtCQBboyYyFeofwt3Kwg_aem_5NkXk9gqaVUJvgLUrirwIw#story

[gout]

Banks will not lend to dying businesses. This is a haircut to the banks and those lending to government.

Government is rigging the market for itself.

[RV Heavy Hitter!]

Banks will not lend to dying businesses. This is a haircut to the banks and those lending to government.

Government is rigging the market for itself.

If the Government can properly structure the housing fund, cap interest rates at under 10%, and set repayment terms between 0 and 15 years, I am confident that those hoarding capital, including banks, will flood the market. Kenyans, including hustlers, can afford to borrow 5 million and repay it slowly over a period of more than 10 years. In the west, especially the USA, 80% of people cannot give you even 100K in shillings. Funny thing is most of these broke homeowners have mortgages spanning 30 years with homes worth over 50 million shillings+. I don't see why credit/debt should not be used as such in Kenya. It will spur the construction of residential and commercial buildings on a large scale, further spurring economic activity. A well-oiled construction industry tends to become refined over time, making construction efficient, the way affordable homes has done in a short period of time. Standardised windows, hinges, paint, doors, roofing, etc., make the cost of construction lower over time instead of everyone doing custom-made homes. In brief, the developing world should just copy the developed world and tailor it to be even better in their jurisdictions. Why rely on guesswork when other countries have successfully implemented these strategies with visible results?
Kenyans may need to learn zoning, and stop constructing small shops and homes. Shopping centers all over Kenya is an eyesore, and I think proper zoning and influx of capital is what is needed. Affordable housing has shown what organized construction can do, not only to landcape/skyline, but to also to a region!

[Nefertiti]

Too good to be true.

[Kadudu]

How do folks who cannot even repay a Hustler Fund loan of 500 Ksh be able to service a 4m Ksh loan? Kenya government should have learnt through the Hustler Fund saga never to participate in loans biashara. leave that to private or state banks.

[RV Heavy Hitter!]

How do folks who cannot even repay a Hustler Fund loan of 500 Ksh be able to service a 4m Ksh loan? Kenya government should have learnt through the Hustler Fund saga never to participate in loans biashara. leave that to private or state banks.

Govt and private sector may need to make it very painful to default on large loans by having Police collecting debts like it is done in USA by sherriffs. Also, defulting in loans makes your credit history bad, which make life misserable. In US in some cases, bad credit means you can't get a job, which eventually will drive you to poverty. Such drastic actions make people work hard to pay their obligations. Those defulting on 500-1000 shillings hustler fund should end in jail for a week or so and no one will ever default again!

[RV Pundit]

Well said

Banks will not lend to dying businesses. This is a haircut to the banks and those lending to government.

Government is rigging the market for itself.

If the Government can properly structure the housing fund, cap interest rates at under 10%, and set repayment terms between 0 and 15 years, I am confident that those hoarding capital, including banks, will flood the market. Kenyans, including hustlers, can afford to borrow 5 million and repay it slowly over a period of more than 10 years. In the west, especially the USA, 80% of people cannot give you even 100K in shillings. Funny thing is most of these broke homeowners have mortgages spanning 30 years with homes worth over 50 million shillings+. I don't see why credit/debt should not be used as such in Kenya. It will spur the construction of residential and commercial buildings on a large scale, further spurring economic activity. A well-oiled construction industry tends to become refined over time, making construction efficient, the way affordable homes has done in a short period of time. Standardised windows, hinges, paint, doors, roofing, etc., make the cost of construction lower over time instead of everyone doing custom-made homes. In brief, the developing world should just copy the developed world and tailor it to be even better in their jurisdictions. Why rely on guesswork when other countries have successfully implemented these strategies with visible results?
Kenyans may need to learn zoning, and stop constructing small shops and homes. Shopping centers all over Kenya is an eyesore, and I think proper zoning and influx of capital is what is needed. Affordable housing has shown what organized construction can do, not only to landcape/skyline, but to also to a region!

[Kadudu]

How can you compare a husltler in the US to a hustler in Kenya? Our guys have nothing to loose. They have no formal jobs. No property under their name. How will you penalise such people? Default is a foreign word to them.

Govt and private sector may need to make it very painful to default on large loans by having Police collecting debts like it is done in USA by sherriffs. Also, defulting in loans makes your credit history bad, which make life misserable. In US in some cases, bad credit means you can't get a job, which eventually will drive you to poverty. Such drastic actions make people work hard to pay their obligations. Those defulting on 500-1000 shillings hustler fund should end in jail for a week or so and no one will ever default again!

[patel]

Credit system is always welcome but boosting and creating more opportunities for income is much better. No one is going to loan you money without corateral or proven income. 95% of Kenya hustlers cannot meet stringent bank loans application rules.

[RV Heavy Hitter!]

Kenya like African countries have a thriving informal economy where incomes are not documented. In the US informal economy is tiny, but still structured in a way that banks and Govt can reach folks. Kenya informal economy need to be policed ie contracts, loans be given to chiefs, subchiefs to be collecting default loans/debt. You jail defulters and people will stop borrowing, but if they do, they will move heaven, earth, and hell to pay obligations. You cannot borrow loan in the US and ran away with it, it will catch up with you either way. If lender go to court, you will be auctioned and you will be homeless, carless, and if your work place finds out you don't pay obligations, they fire you after garnishing wages. US debt/loans is simply militarized in a soft way by sherriffs and courts!

[gout]

There is no willingness for transparency. The opaque nature of housing fund is the sustaining the serious trust deficit.
How are monies being used for treasury bond- someone just wakes up and channels it. Are all contractors paid? How are they paid?

How are Mukuru residents fairing? Where are the rents going?

Well said

Banks will not lend to dying businesses. This is a haircut to the banks and those lending to government.

Government is rigging the market for itself.

If the Government can properly structure the housing fund, cap interest rates at under 10%, and set repayment terms between 0 and 15 years, I am confident that those hoarding capital, including banks, will flood the market. Kenyans, including hustlers, can afford to borrow 5 million and repay it slowly over a period of more than 10 years. In the west, especially the USA, 80% of people cannot give you even 100K in shillings. Funny thing is most of these broke homeowners have mortgages spanning 30 years with homes worth over 50 million shillings+. I don't see why credit/debt should not be used as such in Kenya. It will spur the construction of residential and commercial buildings on a large scale, further spurring economic activity. A well-oiled construction industry tends to become refined over time, making construction efficient, the way affordable homes has done in a short period of time. Standardised windows, hinges, paint, doors, roofing, etc., make the cost of construction lower over time instead of everyone doing custom-made homes. In brief, the developing world should just copy the developed world and tailor it to be even better in their jurisdictions. Why rely on guesswork when other countries have successfully implemented these strategies with visible results?
Kenyans may need to learn zoning, and stop constructing small shops and homes. Shopping centers all over Kenya is an eyesore, and I think proper zoning and influx of capital is what is needed. Affordable housing has shown what organized construction can do, not only to landcape/skyline, but to also to a region!